Talk From The Dock

Back to Basics

2011-12-21T14:10:00.002-06:00

So many of us in all types of consumer-related businesses have been essentially forced into a multitude of new ways to connect with the public. Whether it is through blogging, social media, or just trying to find ways to be seen above all the other online clutter, you can pretty much spend your entire day fiddling around with these technologies in hopes of providing some sort of value to your audience.

But I think the main problem with this idea is that there just aren't enough hours in the day for most of those people you are focusing on to even read what you write. So perhaps the days of telling long stories on niche-focused blogs is a thing of the past. And maybe people who are looking for lake properties would rather spend their limited time looking through actual lake properties that may fit their needs, instead of reading the opinions of agents who are selling them.

I know that most of the articles I receive in my inbox each day end up going straight into a folder titled: "Articles to Read." Not that I ever really think of reading them again, but it makes me feel better if they are gone from my inbox and somewhere that I can find them if I want. However, I would have to take about a three month vacation in an attempt to read them all, and I don't see that happening anytime soon. Not to mention, tomorrow will be a brand new day of fresh articles popping into my email, with brand new ideas -- even much better than those old ones from last week.

So as good as the idea of blogging is in terms of providing expert advice to those who may want it, I'm sure that a ten second Google Search can bring up many well-written articles with the exact content that anyone has in mind at that time. I know that is what I do when I need information on nearly any subject, and it is much more efficient than reading through multiple blogs in hopes of coming across an article that may be helpful.

But, when it comes to providing information about some of the best lake properties entering the market, that is something we are pretty good at filtering out for our ongoing audience. And as the new season approaches, our focus will be more on using our talents to point out some of those new lake places for you in our blog. Hopefully, that will be information you will find extremely valuable as a potential waterfront buyer -- and something that is not as easy to find on your own.

Happy Holidays,

Dan Anderson

The Story of Lakehomes.com Realty

2011-11-06T20:22:00.002-06:00

Lakehomes.com Realty has operated throughout many waterfront markets in Minnesota and Western Wisconsin since the late 90s, and grew from the niche concept that its founders, Dan & Sandy Anderson, had created ten years before that. The idea to truly specialize in waterfront properties, instead of focusing on all types of real estate like most agents do, was somewhat of a new concept back then. But both buyers and sellers seemed to appreciate the focused knowledge that the Andersons brought to the table, and their niche marketing strategies became incredibly effective as a tool to find qualified buyers for their lakefront listings.

As the Internet evolved, Lakehomes.com became their platform to get in front of both waterfront buyers and sellers, instead of primarily print advertising as used previously. Although only 2% of real estate buyers searched for properties online in 1996 when Lakehomes.com was launched, that portion of the business continued to grow and has become the search mechanism of nearly 100% of today’s buyers – especially those in search of homes and vacation properties on water.

Today, Lakehomes.com Realty continues to expand its brand into various market areas across Minnesota and Western Wisconsin through localized agents who can benefit from the marketing strengths of Lakehomes.com, and who are able to create a waterfront specialty business for themselves in their respective market areas. Those agents are able to bring a unique value and added exposure to their listings through highly targeted marketing – something incredibly difficult for most agents to do on their own or with more generalized brokerages. And, as this model has worked well to benefit numerous agents and their clients in the Upper Midwest for many years, it is only a matter of time before we begin to expand into waterfront regions across the country.

Because Lakehomes.com Realty agents have a primary focus on waterfront properties, and tend to view those properties over and over, their sense of value is second to none. Whether they are representing buyers in search of the perfect lake place, or helping sellers prepare a property for its highest potential sale price, their focus on the waterfront market gives them a strong understanding of current values and buyer needs – along with specific knowledge on many of the unique factors relating to real estate transactions on water.

When you work with an agent from Lakehomes.com Realty, you not only get a highly focused professional who is a true specialist in their field, but you also have an incredible combination of marketing expertise and in-depth knowledge of the waterfront real estate business through the many years of accumulated insight that the company and its broad base of specialized agents have acquired. A Lakehomes.com Realty agent does not have to guess what types of marketing efforts are most effective, or which lakes may fit your needs best…they have the answers already. It is the same reason people work with specialists in any type of profession.

But just like specialists in law, medicine, or any other field, Lakehomes.com Realty agents are certainly more than capable of assisting their clients in any general area of real estate as well, such as homes that are not on water. It’s just that when it comes to lake and river properties, they will be hard to beat!

The full story of Lakehomes.com and Lakehomes.com Realty is yet to be finished. But even in an extended period of economic turmoil – a time when many other general real estate companies are somewhat adrift – the chapters are continuing to take shape here. And, best of all, they are filled with a growing list of satisfied clients who decided to use a specialist from Lakehomes.com Realty for their waterfront real estate needs.

Getting Lost -- and Found -- in a World Wide Web of Real Estate

2011-10-20T11:26:00.004-05:00

We were fortunate to learn about the Internet quite early in online history compared to many of our competitors in the real estate business, and somewhat by accident. After hearing a speaker in 1996 talk about how the Internet was a bit like the Wild West, with incredible opportunities just waiting for adventurers, I remember coming home all excited about the possibilities, and we set out to find an internet expert who could help us find a good domain name and build a website to fit our lake property real estate niche.

Many people have asked us over the years about how we were able to get a name as good as Lakehomes.com. It was essentially a stroke of luck, and it has been the driving force behind our business -- and our lives -- ever since.

Having a niche site with great content for so many years has been the key to obtaining powerful search results as well. Long before Google was even around, we had first page results on search sites like AltaVista, Lycos, Infoseek, Ask Jeeves and many others. And as those lovable search engines from the past have faded into darkness, we have been able to find the same success with the main search sites of today.

But new technologies and ideas have given rise to numerous methods of connecting with others and obtaining specific information. Obviously, social networking sites like Facebook and Twitter have created an entirely new array of ways for people to stay in touch and recommend products and services to others. They have also become somewhat effective tools to market all kinds of items, including real estate. Many agents have become experts at using the features associated with these unique sites to get more exposure for themselves, and their properties...but generally with limited success.

Directory sites like Craigslist, Yelp.com, and Thumbtack.com -- where you could find companies like ours under a category such as Waterfront Real Estate Specialists -- try to localize specific types of businesses or products for sale, and sometimes include ratings systems for visitors to find reviews and additional information. There are so many types of directories that it is pretty much impossible to really categorize even the sites themselves, but many of them can be used to either promote properties or a specific real estate company or agent.

And then, of course, there are niche sites like VRBO.com, Hotels.com and LakehomesUSA.com that offer specific products to a target audience. The real estate landscape is littered with these types of niche sites, whether you are looking to rent your property or sell it. And it is quite easy to find high traffic niche real estate sites that can get you plenty of page views in your specific category.

So as a prospective seller these days, you have nearly limitless options to market your own property through a plethora of websites that could potentially find you a buyer. Hopefully, if you decide to list your property with a licensed agent, they will use a variety of those same techniques to get some promising results as well. And if they do, you won't be the one forking out $25 here, or $75 there, to get on the best sites...because many of the free ones are generally free for a reason.

By letting the agents handle this piece of the puzzle you can save a fair amount of upfront money, since their marketing costs are probably included in the commission structure. But even more important, they are not doing this for the first time, and they most likely have a pretty good idea of which sites work better than others.

But there is one thing I can assure you of: If it were that easy to get homes sold in this day and age directly from just using multiple websites, every agent would be doing it -- and earning BIG commissions without much effort. And...they are not!

Being successful at real estate sales takes a number of skill sets beyond just the marketing of the property. It is true that the more exposure you can obtain -- especially to your target audience -- the better chance you have of landing your property in front of the right prospect. But negotiating, preparing the proper wording, understanding the competition, recognizing buyers' motivations, and holding things together up until closing are all even more important than the initial act of finding a buyer.

So, as this economy continues to bounce along on bottom, trying so hard to turn the corner back up again (at least that is the way I see it in the lakeshore market today), you will need every tool possible to not only create the best exposure to find that elusive buyer, but also the expertise to make sure you get to the closing table...and walk away from it without owning the property any longer. Because each step of the process can be a considerable struggle in the current marketplace, and your are going to want all the help you can get.

The Internet has created a sea change in all of our lives that will last at least as long as we all do. But harnessing its true power -- both in searching for products and in trying to market them -- can still be a bit of a secret. It is extremely easy to get lost out there in that Wacky World Wide Web...but not quite as easy to get found.

Another Year Older

2011-08-16T20:44:00.002-05:00

The last few years have been kind of an odd situation for many people, in that they can't easily move on with their lives because of the marginal real estate market. They are seeing life dreams slip away as they get another year older.

Unfortunately, it's not just the sellers who can't move; it is also the people who want to buy those sellers' homes -- but forced to be sellers themselves first. Until we find a large group of buyers, at some price range, who can purchase easily without selling their homes first, this stagnation will continue. And, obviously, that group of buyers will also have to want to purchase!

I've heard all the rationale that spews out of the real estate forums, and from the mouths of real estate gurus. Much of it makes sense, such as just selling your home for what you can and then making it up on the other end. It is true that this will probably work just fine...if you don't owe more than you can sell your existing place for. But the reality is that more and more people are stuck in a kind of quicksand that keeps pulling them further and further into a quagmire, away from their chosen path. And that is the sad reality of this drastic whack in prices which is keeping many creative and motivated people from: moving to new cities, meeting new friends, starting new businesses -- and hiring new employees that would get the economy moving again.

But there are still a fair amount of buyers who can purchase without selling their existing homes, and I think the group who is choosing to do that may be increasing in numbers. With prices down 35-50% in some market areas, it seems that some of those people are realizing that there may never again be an opportunity like there is now to purchase a lake home or cabin at such an incredible discount. So maybe there are enough of those buyers to turn this mess around...at least I hope that is true!

So if you can buy, why not buy now? Go ahead and do your part to get the economy back on its feet, and most likely you will have a heck of an investment in any good lake property you purchase. There are certainly enough of them out there to choose from!

Although a few people may have profited somehow from this mess we are in, I haven't found many small business owners who even know if they can hang on for very much longer. I imagine you see just as many For Sale of For Lease signs as I do on commercial buildings on prime street corners across the state. And from what I have seen, it doesn't improve a whole lot as you drive through other parts of the country either. It is a scary thought to think of all those "mom and pop" shops closing their doors, and also having to get rid of those loyal employees who make very little in wages just to continue living in America's small towns. It will eventually be a drastic change in the landscape of the things we love most about this country.

But whatever happens is what will happen. We can try to fix it, or we can ignore it. And if this downturn continues, each year we will end up a little further from a solution to the problem.

I am hopeful that we will regain our senses and realize that small businesses are what built this country, and are what will get it going again. I'm just a small business owner myself, frustrated by many of the things I've seen lately that seem so incredibly far from any realistic solution to the problem.

So, do whatever you can to get on with your life. Some people are so stuck that they really don't know what to do next. If a few of us take a risk here and there, it might be a big enough jolt to get a few of the wheels turning.

But whether you choose to be in the group that pitches in or just sits on the sidelines, I will guarantee that we are all going to be together when it comes to the one thing we can't control. Next year each of us will be another year older...so let's make the most of it we can!

Midsummer Mania

2011-07-12T20:04:00.002-05:00

Each year around the beginning of July, we end up with a huge spike in the visitors on our website at Lakehomes.com, and it lasts for about a month before turning back the other way to its low point a couple days before Christmas. The same thing happens on our sister sites at LakehomesUSA.com and other waterfront portals across the country. Buyers seem to choose this time of year to be the most interested in thinking about purchasing a lake home or cabin, and then they start drifting away slowly.

Selling lake properties is quite a bit different than working in general residential real estate. Waterfront buyers typically aren't moving from one home to the next, but are instead looking for second homes and vacation getaways. And even if they are thinking of moving to the water for their full time residence, they may not be your normal relocation buyer who has to make a move. So it is entirely in their court whether they make the decision to purchase or not.

After doing this business for as long as I have, I've found that if I can help these buyers understand the market quickly, it will be better for them...and for me. The lakeshore market is not an area of real estate where an agent should decide which three properties might fit a buyer's needs best, at least not until they get a good understanding of the reason why that buyer wants to be on the lake in the first place. And you aren't going to know that until you show them about twenty other lake properties so that they can get a reasonable feel for the current values and what types of structures, lots, lake sizes and lake qualities are available in their price range.

But midsummer is when lakeshore buyers are the most active in their searches -- both online and off. And they aren't out there just for the fun of it. These buyers -- perhaps you reading this article -- are actually ready to purchase a lake cabin, lot, or home...if you get the right assistance and education from your agent.

But if you choose the wrong agent -- one without the abilty to give you the proper education and direction -- you may very likely end up in the largest group of lakeshore property buyers. Those are the ones that never end up having a lake place at all!

Going To Zero!

2011-06-01T08:12:00.003-05:00

If you are searching for marketing secrets, you really have to look no further than the front page of the daily newspaper to get great ideas. Many times I will walk past the newspaper rack in hopes that nothing will catch my eye, and I can just continue on on by. But, more often than not, at least one headline jumps out at me and pulls me back, causing me to throw out another hard-earned dollar or two so that I can read the full story -- without having to look like a cheapskate standing there thumbing through the pages.

This morning there was another blatant headline in big bold letters that I just couldn't resist: "HOME PRICES KEEP ON DROPPING." It seems like I've seen that one quite often lately, and then the next day there is a another one that says that sales have increased. I really never know what to believe any longer when it comes to real estate news, so most of it is probably best ignored.

But what really caught my eye on this article today was the fact that the Twin Cities "saw the biggest plunge among the largest 20 U.S. Cities"....and there is "no relief in sight!" Wow, does that mean we will keep going down in value until there is no value at all? We will certainly have to raise our commisssions if we hope to make any money in a market like that!

It is almost like that Extreme Couponing show, where they buy hundreds of dollars worth of items and only pay a few bucks -- or even get money back! Is the same thing going to happen now in real estate? I can envision a time in the not too distant future where a buyer might ask to for the seller to pay them a mortgage just to take the house, because there will certainly be upkeep and many expenses over the next 30 years. Buying a house could truly become an investment from day one instead of waiting around for years hoping that it will increase in value.

Well today I'm going to be out showing homes in the $300,000 to $400,000 range, because that is in the price range these buyers are comfortable with. And in the past that was important. But if we are going to zero anyway, I guess there isn't much reason to limit our options to any sort of price range. We can just keep throwing out offers on any homes that fit their criteria -- no matter the price -- until one of these sellers finally understands their place isn't worth anything...any longer!

Buyer and Seller Tips on Pricing and Offers for the 2011 Lakeshore Market

2011-04-13T21:03:00.007-05:00

If you are a true lakeshore buyer right now -- one that is serious about purchasing a lake property instead of just looking around -- I'll give you a little insight into what is really going on in the market...and how you might find the best opportunity out there. And lakeshore sellers need to know this information too, because only the truly serious sellers are going to have success this year. So there is really no sense in tippy-toeing around this subject!

I haven't checked all the MLS areas yet, but I did look at the statistics in a couple of them last week, and there are some very telling signs about the waterfront marketplace. In looking at all the residential lake properties (homes and cabins) that went on the market from January 1st, 2010 until last week (15 months), I found that only 15% of them had sold or were pending in one of the MLS Areas, and 17% in the other. That doesn't leave a real likelihood that your lake place is going to sell during the term of your listing contract, so it is probably time to face reality on this issue.

So here is the reality...

For Sellers
There aren't enough buyers in the marketplace for you to put your lake home or cabin on the market hoping that someone might come along at a price you hope to get out of it...IF that price is more than 10% higher than what you would pay for it yourself. Be honest! Now is NOT the time to test the waters, so you are better off just waiting a year of two if you really don't need -- or want -- to get moved on. By not putting your place on the market, you will help the entire marketplace by keeping inventory lower, and you won't get so frustrated with your agent in the process because they aren't getting you all the activity you expected.

Just sit back and enjoy the lake for the time being, and hope for things to get better sometime soon. That may not happen, but unless you have a spectacular property that is incredibly unique and appealing (again, be honest) you are only going to hurt yourself by having it on the market at a price that is much over the actual value. And here are a few of the things that could happen:

You won't get a lot of showings...and maybe not any.
You will become frustrated with very few showings, and the negative feedback on pricing from those who do come to look at it.
You will get more hopeful on each showing you have, and start telling yourself that you will "take anything to get rid of this place!"
You will find yourself dropping your price again and again as you become more motivated, which may appear as a sign of desperation to potential buyers. And if you don't drop your price, you still won't get anyone to look at your property. You will likely find yourself lowering your price to a level below what your agent originally suggested, and then having to look for offers even below that.
If you do find a buyer to put an offer in, it will most likely be quite a bit lower than you think appropriate. And the entire negotiation will be based on hard feelings and mistrust as you try to come to an agreement, unless you just decide to accept their offer -- or something close to it -- and get moved on.
Finally, we have the appraisal and underwriting issue. Remember that if you do come to an agreement on a sale price that is hard to justify based on current market conditions, it still may not get to closing. This is a very challenging time to find support for prices that even appear inflated -- especially on lake properties where there are few comparables.

For Buyers
As a buyer in this market, you are certainly in the driver's seat. There are more good lake properties out there -- those with great sand beaches and superb lots -- than I have ever seen. In the past, those cabins were usually scooped up by neighbors, friends, or relatives...but not anymore. Money is tougher to come by now, and with all the inventory on these lakes, those closely held transactions are much more rare. So remember that many of these sellers are either upside down on mortgages or have lost a lot of equity that they believed they had several years ago. If you approach this as someone who is trying to take them to the cleaners, you probably won't get very far.

Here are my suggestions on finding a very good deal on a lake home or cabin, and having the seller want to work with you to get it done:

Look at a lot of lake properties...not just on the Internet, but in person. If you are working with a good waterfront agent, they will want you to do that so that you can educate yourself on values. I normally don't let anyone look at less than a dozen lake properties, and I prefer to show them twice that many. You will see that a few stand out from the rest of the group. But if you only saw a few, it would be hard to recognize those that were a cut above the rest. Of course, if you are in a much more defined geographic area and price range, there may not be as many available to view.
Have your ducks in order. If you are going to spend $4 per gallon for gas and a day or two to drive around much of the state to view these, then spend an hour talking to a lender to make sure what you can qualify for. I can't tell you how many times I've been out with a buyer who finds just the right property to fit their needs, but then has to figure out how they can make it work. Most lakeshore buyers usually can make it work out and know about how much they can afford, but just take care of this step upfront to put yourself in a stronger purchasing situation.
Don't think all properties are overpriced! The reason I like my buyers to look at a lot of properties is that they will end up getting a sense of what the true values are. As you wander through all the junk out there, looking at ideas to add rooms or do major updating, you will find that most of the time it will cost you a whole lot more money to do those improvements than to find a structure in very good condition already. And lots are even more important. A level, sandy lot on a good lake is generally worth about twice as much as a comparable lot with mucky shoreline or high up on a hill. So make sure you consider that value as you compare one property to the next.
Put yourself in the seller's shoes. Once you find that property that truly stands out from the rest, and is in the same price range as the others, you have come across a nugget. It may be that the other lakeshore buyers don't know as much as you do yet, so don't let them find out. If you feel it is the perfect spot for you, don't get too greedy on the purchasing end. Even at the list price, you have probably found yourself a great deal, but most sellers have at least some room to negotiate as long as it is reasonable. It's when buyers aren't reasonable that negotiations deteriorate.
Act quickly. It is now the spring market. And even though it may be somewhat slow, this is the time of year when buyers have the most motivation. There are some very good deals out there right now, and if you find the one that you feel is right for you, then it probably is! Don't delay, or you may be kicking yourself for a long time.
Finally, if you are OK with doing some remodeling and fix-ups, there is an incredible supply of lake properties that fit into that bundle. And, as you can probably guess, many of those sellers have been battle tested for a year or more already, just hoping someone comes along to make them an offer...while they keep dropping their price. There are also some real gems in this group on great lots and very good lakes. So if you don't mind doing a little work, you can be a little more aggressive on your offers here, and you will find some bargains. And generally, even low offers will be more of a blessing than an insult to a lot of these sellers.

I hope this helps you look at this year's spring market with realistic eyes, whether you are a buyer or seller. If you have any other questions, please give me a call or email.

Dan Anderson
866-327-9889
info@lakehomes.com

List Your Lake Rental...Just $100 for 6 Months

2011-03-21T23:58:00.003-05:00

With all the requests we've had this past week for rentals, we decided it was time to bite the bullet and start offering them on our site. We even decided to throw out a special price for people who wanted to take advantage of our lakeshore traffic to advertise their properties for rent. And not only will we put it on Lakehomes.com -- even highlighted as a Featured Property in the appropriate area -- but you will also be able to place it on LakehomesUSA.com as well, at no additional cost and for double exposure!

So email us or give us a call at 888-346-5253 if you are ready to get your property in front of more potential lakeshore renters than ever. Because lakeshore buyers are some of the best prospects you can find when you're looking to rent. And NOW is the time they are when they are searching!

Adding rentals to Lakehomes.com is something we planned to do quite awhile ago, because it is such a natural place for lake home and cabin owners to match their properties up with our steady stream of lakeshore shoppers. So we apologize to all of you for the delay, but we hope it was worth the wait.

Best New Lakeshore Listings in Itasca County: March 21, 2011

2011-03-21T23:55:00.002-05:00

I had a couple nice emails from visitors who enjoyed by blog post from yesterday, which highlighted some of the more attractive lake properties listed around Minnesota during the past week. Perhaps this is the type of information busy lakeshore buyers are searching for, instead of lengthy ramblings.

Those properties were out of the Twin Cities Multiple Listing Service, which covers much of the state -- except that not all listings end up in it. So I've decided to continue pulling out some of the best new lake listings from each individual mls area during the coming days and weeks, to make this even more comprehensive for you.

This group from today is a compilation of lake homes and cabins listed recently around Grand Rapids and Itasca County, so just Click Here to view these 22 lakeshore properties. As with yesterday's group, they are generally good lots, good lakes, and have features that I have found to be attractive to lake buyers over the years.

One thing that most lake cabin buyers seem to always ask for are lake places that "feel like being at the lake." If they are using it for a getaway, they don't tend to want something that feels more like a home in city. So I've tried to use that as criteria to sort through all the listings that have come on the market.

I hope you will enjoy these undertakings to help you cut through the clutter as more lake properties come on the market. And as always, please contact me at info@lakehomes.com for more information or showings on any of these listings.

Eleven Great Lake Properties Just Listed This Week

2011-03-19T14:49:00.003-05:00

As the real estate industry continues to evolve, I try to look for new ways to use my experience to help lakeshore buyers the most. With over two decades as a waterfront specialist throughout most of Minnesota and Western Wisconsin, I've probably learned a few things along the way that can be of great value to many prospective lake property shoppers. So I thought it might be beneficial to our visitors to point out some of the more attractive lake listings on good quality lakes new to the market each week. Especially since the spring market is now starting to heat up.

This first group is made up of lake properties just listed during this past week in various parts of Minnesota. They are in no particular price range or area, but each had certain characteristics that stood out from the other new listings. Some have great lots, a few may look like attractive values, and others may just have that "lake feel" that a lot of people are in search of. All are on good quality lakes, and when you combine good properties with good lakes...you tend to get the best long term value!

This is certainly not to say that there weren't a lot of other nice lake properties listed during the past seven days. I will be adding more from other MLS areas as well, so I hope to make this an ongoing value to our visitors. Please email me at info@lakehomes.com if you have questions on any of these listings, or if you have suggestions on other lake properties to feature in this blog.

Thanks,

Dan Anderson

Another Way To Find Great Lake Information

2011-03-15T07:59:00.002-05:00

For several months, we've been putting together another great lake property site for Minnesota and Wisconsin, too. It is LakehomesMinnesota.com, and most of it is complete...at least a lot of the information you are looking for.

Unlike this site at Lakehomes.com, LakehomesMinnesota.com breaks out micro lake areas in each larger region, and then points out the best lakes in those locales. In many areas we have also completed the details about those smaller segments that help you understand what it might be like there. And, you'll find direct links to the DNR data for those lakes, so it is incredibly easy to use.

With spring almost here, we wanted to make your search for lake properties as easy as can be, so we hope to be adding new material to LakehomesMinnesota weekly. And between our two great sites, you should not be disappointed.

When the Rich Jump In, There's Probably Gold at the Bottom of the Pool!

2011-03-09T08:39:00.003-06:00

It might be a silly headline, but it's probably pretty true. People with money didn't get there by making stupid decisions. And it isn't a bad idea to watch where they are spending their money -- especially when it comes to real estate -- because they will most likely come out OK on most of their investments.

The problem is that, oftentimes, the great majority of the population can't make decisions or move fast enough financially to get in the game at the right time. And when it comes to purchasing a lake home or cabin, the sense of urgency can be curtailed by family gatherings, summer vacations, and any number of other important events.

This article from CNN Money talks about the fact the million dollar plus homes are now the fastest ones moving. Obviously, in a pure dollar comparison, these homes have been reduced by more than most homes even sell for, so it is a huge savings...and most likely a very good investment. But there are tons of lower-priced properties on the market that have been reduced just as much on a percentage basis, and many of them are great bargains as well. And that is especially true in waterfront and vacation homes on good lakes and good lots, which will always be in demand by people of all income brackets.

So with spring almost here, maybe it is time to check back into that lake house shopping mode and see what's out there. If you're a highly qualified buyer, you may never get a better chance to find the most for the money in a lakefront property.

Lakehomes.com Takes a Big Step

2011-02-03T19:25:00.002-06:00

If you are on this page -- which used to be our home page -- you have probably already seen a new look to Lakehomes.com. One that encompasses 48 more states than we used to have, and one that also adds an incredible amount of features and technological advances from our old programming.

But you will also notice, at the current time, the only new state in operation is Alabama. That may seem like somewhat of a disconnect, but there is a good reason for it.

Any new site, especially one with this much technology, needs a little time to work out a few bugs and make sure everything operates correctly. Because of that, we decided to keep our old design and functionality intact for Minnesota and Wisconsin for a little while, until we make sure everything is working great. We obviously don't want to confuse our visitors in midstream, so everything should still work for you just the way it did before. And sometime soon -- maybe in a few weeks, or a bit longer -- you will also have all the great features that Alabama has.

In reality, we have been working on this strategic plan for nearly two years. But going back further yet, we've always known that Lakehomes.com was the best domain name for lake properties, and sooner or later it had to grow. Now we are there, and what comes next should benefit all of our agents and visitors to a great extent.

So go ahead and use Lakehomes.com like you always have: as the best place to search for waterfront and recreational properties across Minnesota and Western Wisconsin. And when it comes time to launch our new features up in these parts, we will make sure they are even better than you have imagined.

Dan & Sandy Anderson
Founders of Lakehomes.com
Broker / Owners of Lakehomes.com Realty

Wall Street Journal Can't Be All Wrong

2011-01-22T14:17:00.003-06:00

As 2011 begins to unfold, I'm seeing more and more articles that the waterfront real estate market is probably...finally...on the rebound. As I had mentioned earlier, my conversations with waterfront brokers and agents around the country each week all seem to point to better days ahead.

Last week the Wall Street Journal put out this article, which talks about a resurgence in sales throughout many vacation home markets around the country. We have a few of those markets in Minnesota and Wisconsin as well, so I wouldn't be surprised to see activity heating up quite soon. Especially if the temperatures heat up a bit also.

A December to Remember

2011-01-12T09:16:00.004-06:00

Typically, December is one of the slowest months for real estate sales across the country, and waterfront real estate is generally one of the least interesting during that month. But for some reason, this year's sales were somewhat robust for us. And brokers in waterfront markets across the country have told me the same was true in their areas.

One broker near Corpus Christi, Texas said it was the best December -- and starting out to be the best January -- they have had in ten years in the real estate business. A recent article in the Star Tribune talked about the resurgence of multiple offers again in Twin Cities market. Something we haven't seem a whole lot for quite a few years, and even then not as much in mid-winter.

As one of my long-time colleagues said the other day, "Perhaps the buyers are just worn down from waiting on the sidelines." Or maybe people just finally feel a little better about the economy and the fact that prices have dropped nearly 50% in some markets!

Whatever the reason, our website traffic is up about 50% from last year at this time...and inquiries from prospective waterfront buyers as well. We seem to be continuing into early January with a fair amount of sales, and many of those tend to be higher prices than we saw last year.

The bottom may have hit in 2010, and market activity seems to just be awakening once again. Even during this typical time for hibernation!

The Ghost of Lakehomes.com...Past, Present & Future

2010-12-19T12:14:00.006-06:00

Lakehomes.com has been a favorite destination for waterfront buyers since 1996, although only about 2% of real estate buyers were online back then. Today, nearly 100% of waterfront buyers are online, and we continue to keep making the website better all the time.

We wanted to share a few snapshots from our early days on the Internet until today, and then into the future as we seeing it playing out. Because of changes in technology from then until now, some pages may take ten or fifteen seconds to load (let them load fully before you click on them again), but please enjoy this voyage of our company history if you'd like.

In 1996 our site was truly one of the early sites for individual agents, or even real estate companies. We were a bit younger then, and this is how we appeared in those days as The Metro Lakes Specialists.

1997 saw a few minor changes to our design, and the addition of some calming music instead of the brief splash of seagulls -- and even a more professional look. Internet awards were big back then, and so we added some of ours to our home page.

Through the late 90s, the Internet was growing rapidly in strength, and our site was becoming more and more popular. We didn't make a lot of major changes to the design over the next few years, except for those relating to the text and how properties were displayed. During 1999, we changed from being agents with Edina Realty to using our domain name of Lakehomes.com in our own company name -- as Lakehomes.com Realty.

By 2002, we had moved to Grand Rapids and expanded from our core Twin Cities market. What is really amazing is that our looks had not changed at all since our last major design change in 1997. We were in our late thirties then, and we figured that those youthful looks would probably stick with us forever.

By 2003 we had begun to grow into other waterfront markets around Minnesota, and so our design began to take on the look of a real estate company, instead of just the two of us as lake specialists. New agents began to join Lakehomes.com Realty, and we came up with the ship's wheel to help direct buyers to various areas and agents on our site.

In 2004, we were beginning to add a lot more lake properties to our site from around the state, and we massaged our design once more to accomodate that.

2005 was a great year at Lakehomes.com Realty. Our listings and the number of agents working for us were both growing rapidly. The company created a new logo for the times and many changes in the website as well. However, one of the worst things that occured is that all of sudden we became older one day and needed a new photo for ourselves immediately.

Things stayed pretty much the same on the site until 2008, when we added blog articles like this one, and more direct contact with each of our agents directly from the the website. That was also a the year we saw a need to give much better information to the consumers, so we began to redesign the site to give highly defined area information to our visitors, along with direct links to waterfront properties in each market area.

By early 2009, our new design was in place, and with our traffic increasing almost tenfold overnight, we could tell that was what you all wanted! The site has continued on without much change during the past two years, and we are now ready to embark on our largest modification ever...by far!

In the next few weeks, you will begin to see some major changes here that will give you even more information than you get now. Our design and functionality will be growing along with the beginning of a new decade, and our reach across many states will also begin to take effect. As technology continues to give us so many more options, we need to offer as many of those as we possibly can to our customer base, and 2011 is the year that will begin to quickly ramp up.

Lakehomes.com and Lakehomes.com Realty will continue to give consumers the best source of information they can get when it comes to waterfront real estate. Only now we will begin to offer that to even more people across America.

We thank you for all the years of being here with us as we have grown from a couple of lakeshore agents into a real company. Please also stay with us for the next round.

Join Our Top 100 Buyers List

2010-11-04T22:38:00.008-05:00

After doing this job for as long as I have, there is one thing that never seems to change as far as buyers are concerned. Buyers are kind of reluctant contact an agent while they are in the looking stage, but once they are ready to buy, they want the best possible help they can get from a knowledgeable real estate agent.

We would like to provide exactly that to those of you who are now in the mood to find a lake home, cabin, or lot! And we would like to get to know you -- and your needs -- a little ahead of time.

Almost every time I end up talking with a truly motivated buyer, they are extremely happy that I ask numerous questions to help them narrow down the types of properties, lakes, and structures that fit their needs best. That is what I know how to do best, just like the questioning done by anyone who is an expert in their field. We all appreciate knowing we are working with a true specialist, no matter if it is an attorney, shoe salesperson, doctor, hair stylist...or a Realtor.

From what I have seen in various reports, the average Internet real estate shopper spends between 12 and 20 months searching online for properties that might fit their needs. In fact, most Internet shoppers aren't even really searching; that is still difficult without the full MLS information -- especially with lake properties -- because the public tends to get less information than Realtors do. And please don't blame that on the Realtors themselves...it is mainly due to the local real estate boards choosing which information to let out to all of you, along with limitations from many of the third parties who actually transfer the data.

So if you want to search various fields like: sand shoreline, elevation from cabin to the water, size of lake, which direction the property faces -- even sometimes the address...and numerous other criteria -- you just don't have that capability. You get to see things like numbers of bedrooms and baths, square footage, and other insignificant things pertaining to lake properties. Lakeshore buyers have needs that the average buyer isn't concerned about, and those public searches on various real estate company websites really don't give them what they want!

As a company, our agents enjoy working with buyers who are somewhat motivated and need our help. That is what they are here for, and that is how they get paid for their efforts. If you just like looking at properties to get an idea of what prices are, you can probably handle a lot of that yourself on the other end of this computer screen -- and it works pretty well for that purpose.

So this is what I would like to offer:

If you are really interested in purchasing some type of lake property fairly soon, then let us see if we can be your guide. If you join our Top 100 Buyers List (limited to 100 buyers), you will not only have a waterfront specialist working directly with you to narrow down the criteria that truly fits your needs, but you will have ongoing listings coming to you that are EXACTLY what you have specified. You will even be provided with current comparable sales on an ongoing basis to let you know what kind of activity is going on in your desired market. Isn't that the type of service you would expect from a true specialist?

And...you can stop having auto-emails sending you junk, day after day!

The big problem with the real estate industry is that it is pretty easy to get into. A few weeks of classes and a short test get you a license. And obviously all agents have to start somewhere, but that might just be the person you get ahold of on the phone when you decide to finally make the call about seeing a particular lake property day.

If you want to make sure of having expert representation and advice throughout the buying process, YOU need to take control of your own destiny by creating a relationship with an agent who knows your needs ahead of time!

We want a 100 good buyers who actually want our specialized knowledge...no more. When we find a lake place for one of them, we'll let the next one on the list in. If you are just really looking around for now, the Internet can probably help you just about as well, because you won't be ready to review all the information we send you anyway.

It may sound harsh, and even against typical Realtor etiquette, but I would rather be a valuable asset to one serious buyer than an "email friend" to a bunch of shoppers. And I think the agents at Lakehomes.com Realty feel the same way.

So you can join our list today and get the best information possible on lakeshore listings for your specific needs at no cost, updated as new ones come on the market. Just fill out our Contact Form or email Top100@Lakehomes.com.

We look forward to you being one of our Top 100 Buyers!

Opting Out of the Recession

2010-11-02T18:39:00.002-05:00

I recently saw a news article about a Twin Cities company that decided to opt out of the recession, and it seemed like they were growing faster than most any other company around these days. I'm not even sure what their business was, but I think it had something to do with technology, Internet, web stuff, or something like that. But whatever they do, it is probably the philosophy of the CEO that makes things move ahead...no matter the external forces.

We can't hide the fact that the real estate business is in a terrible funk right now. And those of us who go into the office each day hoping it is going to change are going to get sore butts from waiting for that to happen. I know I have a little pain now and then!

I have to admit that it is hard to be fired up when everyone is kind of down. But I still see a fair amount of people that understand there are opportunities on the horizon. In fact, just today I talked with an attorney and real estate investor who feels things are getting pretty tasty out there on the buying side, and that may start to become more prevalent. Sometimes it just takes a whack in the side of the head to see some opportunities.

Although I think it is crucial to be knowledgeable and experienced in short sales, foreclosures, and distressed properties of all types -- if nothing else than to help a lot of people out of their difficult situations -- I would like to think of myself as a specialist in helping anyone interested in buying or selling waterfront properties...no matter the state they are in. That is the way most of my agents see themselves as well.

I don't know if I can entirely opt out of the recession even if I choose. The market is what it is, and there is not a lot we can do about that.

But hopefully, my agents and I can keep educating buyers and sellers on the reality of today's waterfront market, and help them through opportunities on both ends. That is what we have done best for years...and we would like to continue with that tradition.

Help for Waterfront Property Owners in Financial Trouble

2010-10-25T22:48:00.005-05:00

My last blog post focused on some of the issues we are facing in our current real estate market. This year it seems that many of our incoming calls are asking about short sales, foreclosures, and overall "good deals." And after talking to other waterfront agents around the country, I found this was not an anomaly, but quite common in their real estate markets as well.

But while it is a great time for financially strong buyers to purchase lake properties -- or any home -- it is a very difficult time for those who need to sell. And although lakeshore owners were somewhat insulated from these problems not too long ago, it is now spreading to higher-priced homes and lakeshore properties along with all others.

With that in mind, I wanted to do a much better job for both lakeshore buyers and sellers by getting my CDPE designation (Certified Distressed Property Expert), and launching Lakeshort.com. The site provides a vast amount of information relating to these complicated situations for sellers in financial stress, and some guidance to help in the day to day decisions that tend to become overwhelming during these difficult days.

The CDPE designation gives agents an in depth knowledge of the many issues relating to our current real estate market, and a thorough understanding of how to work with banks to achieve a much higher success rate in these transactions. In fact, although the national average for getting a short sale put together and closed is only 24%, CDPEs are successful 80-90% of the time due to their training. And when sellers don't have a lot of time on their side, it is critically important to get it right the first time around!

Whether you have questions about buying or selling distressed properties, I hope that my specialized knowledge in waterfront real estate will provide a better basis for me to assist you with your needs.

Dan Anderson
Broker / CDPE

Distressed Lake Properties

2010-10-19T17:53:00.002-05:00

Each day we are bombarded by news from a wide array of sources, so certain stories seem to come at us over and over -- on television, the newspaper, radio, or the Internet. One of the hottest stories today is focused on distressed real estate, and the growing number of foreclosures and short sales. Most likely, that is going to be a big story for some time yet.

Lakefront foreclosures and short sales have been a little slower in coming because many owners have still been able to afford them, but even that is changing as a large number of professionals and small business owners have been affected by job loss or lack of business. That trend will certainly bring many more waterfront properties to the market that look like great values, but just be careful to think about your main reasons for purchasing on water before you jump in. And be aware that there are also a lot of very good values on the market that are not distressed, so keep an eye open for all the available properties that fit your needs.

Not too many years ago we saw prices escalating at such a high level that most people felt the waterfront market would get away from them if they didn't find something quickly. Nearly any lakeshore property was attractive to someone, no matter the type of lake or shoreline. Even novice developers could make a quick buck by purchasing chunks of land on some of the most marginal lakes, and then turning them it into somewhat affordable lake lots. People obviously weren't thinking clearly!

Throughout my time in the waterfront real estate business, I have always done my best to help my clients find lake properties that had the best chance of appreciation, based on the wish lists of thousands of buyers I had worked with over the years. If 80% of the buyers want clean lakes with full recreational opportunities, along with fairly level lots and hard-bottom shoreline, then it only makes sense that those types of properties should have the best staying power when it comes to value. Unfortunately for sellers, because of the economic downfall we've happened upon, even those lake homes and cabins have had heavy hits on their prices, and there are incredible values available on those types of properties as well.

But in time things will turn around. And when prices begin to inch upward again, it will still be the lakeshore real estate with the most highly desireable characteristics that attract the greatest numbers of buyers. If we still believe in supply and demand, it only makes sense that the prices on those properties will shoot up the fastest when that market re-entry begins.

So during this time of foreclosures, short sales and overall real estate prices at some of the best levels in many years, make sure you think about that as you go about your search. Perhaps a lot of the most distressed lake properties today started off looking like bargains several years ago, but they may also be the ones that have a hard time gaining much value in the future.

Lakeshore Buyers - and Sellers - Experiment

2010-10-07T13:56:00.008-05:00

In this age of social networking, viral marketing, and unlimited information at our fingertips, it seems we are also drowing in technological clutter, creating a tough time for those of us in the fifty plus range. As much as we know we should keep up with the latest trends in marketing and online interaction, our brains seem to have a steeper learning curve as we pile more things on top of our life-long educations already stored there. But many of us are trying hard to catch on by becoming friends -- with as many people who want us as friends (not our kids of course) -- on Facebook.

In general, people who have spent a good number of years at the "College of Hard Knocks" believed that the expertise they were learning there, in their chosen profession, was enough to carry them through. After all, our parents seemed to do OK with that specialized knowledge during their careers...didn't they? But as one colleague put it, "We seem to have to keep reinventing ourselves continuously now."

The real estate industry is a prime example of this. It seems that most real estate agents and brokers have now been left in a vast quagmire of uncertainty, not knowing how to find qualified buyers for their listings. The days of sitting in the local real estate office waiting for walk-ins or sign calls are long gone. And if you can't stick a big, bright stop sign out on the information highway -- or at least a yellow flashing light -- most buyers are going to zip right past you.

We at Lakehomes.com Realty are no different than the rest. Although we have been fortunate enough to have a specialized niche that many others don't, and a very strong Internet presence for many years, we also have to change with the times...or the times will change us. Even with more than two decades experience as waterfront specialists ourselves, many highly skilled agents in our company, and some of the largest waterfront websites online, we still have to keep our business fresh by exploring new marketing ideas.

With the the vast amount of information available out there, I'm sure that a lot of waterfront buyers might stop by our website for a cup of coffee, only to go get their donut at another website -- or maybe four or five donuts on multiple sites, until they become confused as to where the best bakery is. And I'm sure the same thing happens to us in reverse, just because no one wants to take a chance on missing out on the "best donuts" available.

I do the same thing when I'm shopping for products online, because it is just TOO easy! But then I realize I just wasted two hours, and maybe saved seven dollars...before shipping. That's about when I wish there was someone online with a stop sign and a road map that had sent me to that best deal without all that surfing -- or told me that they were all pretty good deals. Kind of a whack on the side of the head to wake me up a bit and remind me how valuable my time is!

Like all real estate brokers, we'd like to think we have both the best coffee and the best donuts, and that waterfront buyers and sellers will know that once they get to our site, avoiding more taste tests further on down the virtual highway. But sometimes we may just have to work on our recipe a little to make sure.

Besides Lakehomes.com, we own multiple other waterfont websites like LakehomesUSA.com, and we have incredible abilities to get the word out to tens of thousands of water-related buyers and sellers with the touch of a button. As we look at how Facebook, Twitter and other social networking sites have changed how people communicate and do business, even those of us who have been a little slower to embrace these new methods of immediate interaction need to get on the bandwagon.

So here is my experiment that anyone who wants to can take part in...buyers or sellers. And please let me know if you think this is a good or bad recipe so I can change the ingredients if necessary. You can even let us know if you like the idea on our new Lakehomes.com Facebook Page, or just leave a comment on this blog.

We want to give you a personal roadmap based on your needs. As a waterfront buyer, you most likely have a wish list that combines many factors, including size of home or cabin, price range, lot size, lake quality and size, and many other features you might not have even thought about yet. As a seller, you know the best qualities of your propery better than anyone, and why someone else would want those same things. And some of you sellers get a little ticked off when real estate agents don't try to get those points across to potential buyers. We think it's time to try a little harder to match the right buyers and sellers...beyond just doing the same old thing.

With up to 50,000 views or more each day on Lakehomes.com -- and many more than that on LakehomesUSA -- there is no doubt that we attract a lot of highly targeted buyers in search of just the right waterfront home, cabin or lot. The problem is, if you're one of those buyers, no one really knows about you or how to help you the best (although some of you want it that way). But when you think about it, you're driving all over this virtual highway wasting gas and countless hours of your time, when you could have someone giving you a highly detailed road map to point out a much more exact destination.

I can't even begin to tell you how many lake homes that buyers choose to look at from the Internet that are entirely disappointments once they get there. Most buyers don't realize that Realtors have much more detailed information available on the actual MLS than what is displayed publicly, so they can generally knock out a lot of marginal properties rather quickly. And it always seems like the photos look a little better online than the property does in real life...with that bright blue house only 25 feet away. I wonder why the camera didn't pick that up?

So we think it's a great time to see how powerful this whole networking thing has become, by not only creatively advertising listings -- but advertising the buyers' needs as well. You could probably try to do the same thing yourself, but I think the real strength is in the combination of our highly targeted sites combined with this new wave of exponential communication growth.

Even though marketing has gotten much more complicated in how you go about it, the basic premise hasn't changed. It is still a matter of exposing your product to the most qualified prospects. And whether you are a potential waterfront buyer or seller, those prospects are already on our sites looking for just the right property...or looking at comparable properties in an effort to price theirs accordingly. Why not get to them first, and in a multitude of ways that your competition can't?

If you want to take part in this experiment, as either a buyer or seller, just fill out our contact form and let us know your needs so that we can create your personal roadmap. And since everyone's situation will require a different recipe for success, the more ingredients you can provide, the better.

Like any good experiment, it is important to publish the results. Please stay tuned on Facebook for those updates.

Breaking it Down (Part 3) Pine County

2010-09-16T13:00:00.004-05:00

Today we'll head over to the other side of the Twin Cities, and north a bit. Pine County, Minnesota is generally in the 1-1.5 hour range north of St. Paul, up Interstate 35. Pine City -- bordered by Cross Lake and Pokegama Lake -- is at the southern end of the county, and Sturgeon Lake, along with it's namesake body of water, is on the north end.

You will find a bit of a crossover in the Duluth MLS in the northern part of the county, so some of the listings will only show up there. But for today's purposes, we will use data from the Northstar MLS from the Twin Cities, which will have most of the county's listings.

Just as we did in Wright County, we are only going to be showing statistics for the residential properties, as there are only 17 lake lots currently on the market, and there were only two of those sales last year. As I mentioned before, there really aren't enough lake lot sales near the metro area to get good figures on these, or ideas of value, so I will only use full stats in outlying areas.

So here is the data for the last three years:

Residential Lakefront Properties
Active on Market
62
Average Price
$269,782
Average (total) Days on Market
301

Solds 1/01/10 - 9/15/10
22
Average List Price
$216,450
Average Sold Price
$204,457
Average (total) Days on Market
174

Solds 1/01/09 - 9/15/09
26
Average List Price
$242,746
Average Sold Price
$223,179
Average (total) Days on Market
249

Solds 1/01/08 - 9/15/08
27
Average List Price
264,526
Average Sold Price
$242,539
Average (total) Days on Market
238

After looking at this data, it seems that the both the average list price and sale price in Pine County has come down signicantly this year, which also may be lowering the average days on the market. Perhaps those prices are getting to a point where buyers are seeing them as good values now and moving on them faster.

We will continue to keep looking around Minnesota and Western Wisconsin in the days to come, in search of the best opportunities in this market.

Breaking it Down (Part 2) Wright County

2010-09-14T13:31:00.006-05:00

Yesterday I provided you with the statistics for active and sold waterfront properties in Itasca County, to give you an idea of how the market is faring there compared to last year. As we found, it is holding its own after the main summer months. And fall can still be a fairly active lakeshore market, depending on the weather...and peoples' moods!

Today, we will visit Wright County just to the west of the Twin Cities. Unlike Itasca County, which would be a very difficult commute from Minneapolis -- in the three hour range -- the Wright County Area lakes are a combination of year-round homes and cabins, mainly for those who work in metro area. So let's see how places like Buffalo, Maple Lake, Annandale and Howard Lake, Minnesota are doing this year.

Like yesterday, we will provide the number of Active Waterfront Properties, along with the average price range and average days on the market. Then we will look at those same categories of Sold properties compared to the ones in the same time frame last year.

Residential Properties
Active on Market
195
Average Price
$397,914
Average Days on Market
231 (total combined days if listed more than once)

Solds 1/01/10 - 9/13/10
55
Average List Price
$321,218
Average Sold Price
$301,208
Average (total) Days on Market
237

Solds 1/01/09 - 9/13/09
51
Average List Price
$360,819
Average Sold Price
$338,422
Average (total) Days on Market
231

Solds 1/01/08 - 9/13/08
53
Average List Price
$379,749
Average Sold Price
$359,774
Average (total) days on market
196

Because of the downward trend still taking place in Wright County, I decided to go back an extra year to compare 2008 as well. It is hard to tell if we are at bottom here yet or not, but we should get good indications of the market overall as we continue to delve into the stats for each county in Minnesota.

Hopefully, this will be helpful for you to get a "crystal ball view" of what might be happening in the market before it occurs, and beat everyone else to the table. Once the market hits bottom, then eveyone knows about it!

As far as Wright County Waterfront Lots, there aren't really enough lake lot sales around the Twin Cities to get a good representation of that type of property movement. Currently, there are 47 lake lots on the market in the county. There were six sales this year during the same time period as noted above, and there were five last year between those dates. For the most part, lakeshore lots will show more realistic numbers in the outer areas of the state.

Come back often as we continue our 2010 Stats Tour around Minnesota.

Breaking it Down

2010-09-13T15:27:00.005-05:00

Hope you all had a good summer. I decided to take a break from the writing for a few months just to see how this market was shaking out. Some of the talking heads were saying that it was going to be a fantastic real estate year, and others thought we were in for a much deeper fall. Of course, the only way to tell for sure is to look at the market after the fact, and I think we can now start taking a little glimpse into that data.

There is no doubt that the tax credit idea did help spur sales for first time buyers last spring, but the fallout of that is probably still going on. Many of those people would have purchased anyway, and would have evened out the market some over the next several months. Instead, that market came to an abrupt halt once the credits had gone away, and led to headlines in August such as, "Metro-area Home Sales Down 42% Over Last Month."

But our focus continues to be on waterfront properties for the most part. So I am going to start putting out the real numbers -- county by county -- to give you the honest truth.

Today, I am starting with Itasca County, Minnesota, the home of Grand Rapids, Marcell, Bigfork, Coleraine, Deer River, and a few other hamlets. It is also the early home of Judy Garland, who moved away for bigger and better things before she could spend much time out on the lakes. It is a water-filled area where the Mississippi River winds through, and boasts 1007 lakes within its boundaries, according to Mary Shideler -- The Kayak Lady -- who has paddled all of them as of this year, an odyssey she began in 1996.

When you use multiple listing data to look at sales in defined areas, you are always going to have some overlap between various counties. So even though most of these properties are in Itasca County itself, some will be in Koochiching, St. Louis, Cass, and perhaps a couple others that border it. But for the most part, the idea of comparing apples to apples in terms of sales from year to year will remain true.

So here we go. As of today, September 13, 2010, here are the market statistics, broken down into residential waterfront properties and waterfront lots, separately:

Residential Properties
Active on Market
397
Average Price
$317,309
Average Days on Market
209

Solds 1/01/10 - 9/13/10
74
Average List Price
$247,187
Average Sold Price
$226,222
Average Days on Market
236

Solds 1/01/09 - 9/13/09
65
Average List Price
$249,673
Average Sold Price
$226,666
Average Days on Market
220

Lots
Active on Market
323
Average Price
$153,218
Average Days on Market
272

Solds 1/01/10 - 9/13/10
26
Average List Price
$119,675
Average Sold Price
$105,788
Average Days on Market
274

Solds 1/01/09 - 9/13/09
18
Average List Price
$127,216
Average Sold Price
$108,888
Average Days on Market
347

So how does this look overall? We have been having a fairly steady drop in prices for several years, and this year -- although not great -- prices seem to be holding over last year. That should signal the bottom of the dip for Itasca County waterfront properties, so now we just have to wait and see how fast the rebound occurs. Most likely, it will start bringing some people back into the market that were worried about further drops, but it will still be a long process to bring things back close to where they were.

Watch for breakdowns on other counties around the state, as we try to get a handle on where this market is going next.

What's That Ringing I Hear?

2010-05-05T11:40:00.005-05:00

Walking around the office during the past week, there was this ongoing, unfamiliar sound -- or at least one that I hadn't heard for some time. Then I realized it was the telephones, which during the past couple of years I was thinking of putting on Ebay due to lack of use.

In addition, there were smiles on the agents' faces...almost like it was the Christmas season. But I looked out the window and saw that there was no snow, so I figured maybe it was just some kind of weird dream.

What a change from a year ago! No more negative real estate articles in the newspapers, lots of calls for showings on listings, and quite a few sales coming across my desk to review. I believe this market may actually have some legs.

From other reports around the state -- and across the country -- activity seems to be up in general. Even after the tax credit went away last week, the momentum seems to be getting stronger instead of fizzling out. And even on higher priced lake properties, a fair amount of transactions are taking place.

Time will tell if this is real or imagined. But there is no doubt that agents are getting a lot of buyers coming back into the market after sitting on the sidelines for a year or two. Many of our agents have more than a hundred buyers, each, who are again returning emails and calls after taking a hiatus. And quite a few of them are feeling a little more urgency, since it looks like prices may be turning back up again...instead of going the other way. The combination of substantial drops in prices and low interest rates -- plus the pent up demand of buyers who have been waiting it out -- may be the ticket to even a faster turnaround than was predicted.

We probably don't want to "count our chickens" -- unless we're really bored -- but, personally, this feels more like the real estate business I remember way back when. I'm just not sure I'll be able to handle all this exuberation day after day...or all the noise!

A Sign of Life

2010-03-21T11:42:00.002-05:00

After several years of nearly nonexistent spring markets -- due to both weather and markets trending in the wrong direction -- it feels like there is a little bit of life out there this year. It isn't a surprise that this awakening is beginning to take place, with a combination of depleted snow, low interest rates, and pent-up demand.

Although there is still a lot of inventory available, it is becoming quite obvious that waterfront properties in good condition and priced accordingly -- especially those with sandy shoreline and attractive settings -- are catching the attention of more buyers earlier than normal. The real benefit to buyers is that, unlike many years, sellers who are serious about selling are not playing the "let's see what we can get" game of pricing their lake places higher for the spring market. With slow sales since 2006, those who want to sell are realizing that they need to be attractive in both condition and price for a successful sale to happen. And with a limited season, you can't wait until July to bring the price down...or it is just too late!

The one thing that I've really noticed is how much of a divide there currently is in good lake properties over the not-so-good ones. There is always a lot of junk on the market in any type of real estate, but now, more than ever, those ugly ducklings really stand out. And typically, those are the ones that seem most unrealistic in their pricing.

So if you have been holding off for a couple years while the market has been declining, I think it has finally declined. There are some extraordinary deals out there, both in properties that have dropped in price during the last year, and in some of the ones that are just coming on the market.

Prices generally begin to jump up along with buyer activity. So if you want the best deal, just beat the rest of them to the "closing" table! And with a possible early ice-out, you just might get an entire season of enjoyment at the lake.

Waterfront Rentals...for the Entire Summer!

2010-02-09T15:58:00.004-06:00

In past years, finding a lake place to rent for the summer season in Minnesota or Wisconsin was somewhat challenging. There were plenty of lakefront homes at affordable rental rates during the off months, but most everyone up north buys on the water to enjoy it in its liquid form. So unless the property was purchased with the intent of it being a rental in the first place -- and generally at higher weekly or nightly rates -- finding one of these for the best three months of the year was quite difficult!

Recently, however, things may have changed somewhat. The real estate downturn made it difficult for some potential sellers to move on with their lives during the last few years, and some of them have turned to renting until the lakeshore market picks up again. However, most are not interested in only renting for a few months, since it is quite a bit more difficult to find good renters in the off-season. And obviously, the going price is quite a bit lower. But if you are willing to sign a year-long lease, you may be able to find some reasonable deals on the northern waters. At least for a while!

One thing they say about real estate is that the market softens slowly (think of the steady downward trend over the last few years), but it comes back quickly. Most real estate gurus are now predicting that it is now ready for its accent back up...and that may happen fairly fast! Most indicators are now showing widespread signs of this taking place, from vastly increased web traffic on real estate sites, to greater activity at open houses. And when buyers start seeing others jumping back in, it tends to start a feeding frenzy for fear of missing out.

At this point in time, you may still find some of these lakeshore homes and cabins available to rent until the sellers get a good sense that a rebound is taking place. After that, many of them are going to want to move those properties as soon as possible. But you should also remember that if you are caught in a lease for the next year, and your real intent is to buy a lake place, you may miss out on getting in before the prices head back up.

By the way, we do get a lot of requests from lake buyers who ask about possible rentals. Right now we have people looking on Rainy Lake and Mille Lacs for these types of long term rentals. If you have a lake property you are considering renting out, please let us know and we will pass it on to these prospects.

A Glance at 2010

2010-01-08T12:13:00.002-06:00

With another year behind us, it's always interesting to guess what the coming year holds. If we aren't beaten down enough from several years of falling real estate prices, we can always turn on the History Channel to find out just when the world is going to end so that we can formulate a plan to have just enough savings to hold us over until then. Soon, I'm sure they'll have the number of days left right on the TV -- just like in the Iran Hostage Crisis (only in reverse order) -- so that we won't have to add them all up on our own.

But then again, what if they're wrong? Then what? We'll wake up the next day only to find out we're broke...and now how are we going to buy that lake place we were thinking of a few years back?

Yes, it's all this constant guessing that keeps life interesting. So I'll make a couple guesses myself.

I'm guessing that the people who bought lake properties last year were pretty smart, because they probably bought at about the bottom of the dip.

I'm guessing that the market isn't going to jump up real fast, but I do think it has begun to turn around.

I'm guessing that there will be a bunch more smart buyers who pick up some really good lake properties at very low prices early this year.

I'm guessing that the stock market will go up, then it will go down, then it will go up, then it will go down again...and so forth.

I'm guessing that it is pretty hard to get more than about 3% interest on a cd these days. And they aren't all that fun to play with.

I'm guessing that if you buy a lake place this year, you will get a lot more enjoyment using it than you will with your cd. And I think it will bring you a better return over time as well.

Oh yeah...one more guess: I'm guessing that you and your cabin will still be around in 2013, as long as you stay in good health and don't get run over by a bus or anything like that.

Better Late than Never

2009-11-19T22:54:00.002-06:00

Sorry about the long delay since my last post. October was such a dreary, rainy, cool month up north that I just didn't have it in me to write an uplifting column, and these days I try to stay away from writing negative ones. On top of that, turning the clock back an hour only added to the misery. And when you feel like going to bed at 6:00 because it has already been dark for awhile, that really cuts down on production.

But the worst of the ugliness is almost over. Soon the snow will be falling and give reason to be outside shoveling or plowing, and a good blanket of white stuff seems to brighten everything up for a little while. At least until we get sick of it in early February, and long for ugliness again until the greenery of May...or June!

But you are probably more interested in real estate than weather reports if you have tuned into this website. So here is my report -- and prediction -- for this year and next:

As I said earlier this year, the bottom hit a while back. That doesn't mean that everything popped up in price, or that there was a huge increase in lakeshore buyers all of a sudden. Things like that take some time, but I think that the momentum is picking up even now during this typically slow time of year.

From all the agents I've talked to across Minnesota and Wisconsin, they all seem the believe the last half of 2009 was a whole lot stronger than the first half. We are still seeing a good number of buyers calling to look at lake properties even as December looms, and that is not the typical waterfront real estate climate for this time of year. Normally, most of the phone calls during these later months are from a contingent of well trained and hard-skinned inquisitors who ask how much the seller will take before any questions relating to the property itself.

I think the momentum will continue and increase throughout 2010. There is no doubt that people are still losing jobs, but others seem to be finding them. It could be we are just in a "cleaning out" phase of certain industries; others may be starting to show an upswing.

With the incredibly low interest rates, huge corrections in prices, and investments sitting under mattresses or in cds not doing all that well, real estate -- and especially waterfront real estate -- may be the next big thing. And besides the great value, it may just add a little pleasure to your life.

Of course, you could pick up a gold bar for a mere $445,000 that also might go up in price. They are quite a bit easier to maintain, but I heard they are really hard to ride on behind the boat.

Summer in September

2009-09-24T17:23:00.002-05:00

Generally, by this time of year, we get a fairly substantial cool down in these early months of fall. But this year isn't like most. Our summer was kind of non-existent, and now each day feels like late July or early August.

In some ways we should be pleased that the snow isn't falling yet. But most of us - at least the ones who have to work or go to school each day - kind of feel like we got a little bit gypped. But this may be what the lakeshore real estate market needed!

Many of our agents at Lakehomes.com are as busy as they have been all year long...in fact, busier. And many of the lower priced sales we saw in the first half of the year have given way to higher priced transactions. It seems that quite a few of the buyers who got busy doing other things during the summer months - or maybe weren't real motivated because of the weather - now have a strong interest in finding a lake place before the winter winds head our way. Of course, with the way this has played out so far, we may still be boating in January this year!

This still isn't an easy market for a lot of sellers. To get much interest, you have to be priced extremely well in this current real estate climate. With a huge selection of lake properties available, most buyers have a vast amount of waterfront cabins, homes and lots to choose from. So unless your place is extemely unique - or priced very well - it will just blend in with the others.

Most likely, fall and winter will show up in time. But until then, there are some excellent opportunities for buyers - both in great values and a large amount of inventory to pick through. If you are even considering finding a lake place for a year-round home or seasonal getaway, you probably won't find a better time to make it happen.

The Stages of Life...On and Off the Water

2009-09-01T08:58:00.013-05:00

Several weeks ago I got a call from one of my past buyers. His family had purchased an incredible, historic property from me near the Canadian border just a couple years back for a cabin, and he said they loved the area so much that now they were thinking about finding a permanent home in Northern Minnesota, also. Since they currently live several states away, it was obvious that the lure of the northwoods had taken hold, and they knew it would be a positive change in their lives.

During the past two years their kids had grown fond of all the brand-new things to explore in these foreign surroundings, and these recent experiences had given them a wealth of topics for family conversations and bonding. Things we all need, to keep our lives interesting!

Although I don't personally work with as many buyers as I used to because of my full time role running the company, it never takes long to bring back those feelings of accomplishment in finding just the right lake place for a waterfront buyer. There is something about these special properties that makes the hunt a little more exciting than just trying to sort between the various designs available in your typical subdivision. And in all the years I've done this, I don't ever remember any buyer who wasn't thrilled with their new purchase and the variety of life's changes it brought them...and the promise of new adventures to come.

So if lake properties bring that much enjoyment, why would anyone want to sell one of them? That is the question most every buyer asks as they view these listings, especially the ones that stand out from the rest, for any number of reasons.

As real estate professionals, we are trained to look at properties differently than buyers and sellers do. Buyers tend to see the surfacy things that stir their emotions, which is why staging a home is so important. Sellers tend to put a value on memories, conveniences and comforts, which have come together in a property to make it their own. Realtors can usually see a more general snapshot of how a particular property fits in with the needs and desires of the general audience who is in that market.

But when a real estate agent decides to sell his or her own waterfront property, do these same tendencies hold true? It is a good question, and one that all agents should experience now and then to go through the same emotional ups and downs as their clients. And we decided it was time for us to do exactly that.

During my real estate career, I've seen how various stages in life tend to affect peoples' needs and desires in waterfront properties. Typically, lakeshore buyers are either looking for places they can enjoy while their children are growing up, or after their kids are grown. Those in-between years during junior high and high school oftentimes get a little busy, and sports or hanging out with friends eats up quite a few hours each day. Getting the family to the cabin can become more of a chore than a exciting family outing, but generally all are happy once they are there.

Our cabin on Rainy Lake has been in our family for forty years: thirty-seven of them as my parents' home (and mine while I grew up there), and it has been my family's getaway for the past three years, after my parents decided it was time for them to move. It is a prime piece of property - with a hard sand bottom and sought after seclusion - on one of the most gorgeous lakes in the country, where you can boat from your dock to nearly a half million acres of pristine waters. And with it's massive and modern 1,600 square foot fully heated garage, all the boats and toys have the perfect place to reside.

The main portion of the home was constructed from logs in the late 1920s and has been thoughtfully added to over time. My passion for dock and deck building over the years led to an array of sitting areas, extending from the expansive lakeside deck to more than a thousand square feet of permanent docking and benches along the water's edge, and also encircling the waterfront firepit. It is a perfect blend of privacy, relaxation, and recreational activities on and off the water, and similar to having your own resort while hosting friends from distant areas.

During our ownership over the past few years, we have provided more than a thousand hours of labor, making changes that we felt would update the structure and convert the home to more of a cabin ambience, after its many decades as a full-time home. Much of the main living area still had its classic early surroundings, with wide tongue and groove pine walls, stone fireplace, and well preserved hardwood floors under the carpet. But design improvements such as moving the kitchen to the lake side of the home, and blending more woods instead of wallpapers, have all helped to create more of a cabin aura.

From what I've mentioned, it sounds like the perfect place! In fact, I might even want one of these for myself! So why would we ever consider selling such a quintessential lake property? Perhaps, it is "the stages of life."

We love being at our place on Rainy Lake, and while there...life is great. Boating for 40 or 50 miles into Canadian waters where you hardly see another human - and where walleys are generally thick - is a refreshing experience, and it washes many of the stresses away that build up each week. But reality is still waiting for us when we get back home, where kids are starting another year of school, college applications need to be taken care of, parents and family members are not visited enough, and employees have issues that they need help with. On top of that, it is no secret that the real estate market has been a bit slower for a few years, so those 1,000 plus hours we put into working on the cabin - and another bunch of hours enjoying it - might be better put to use in the office for awhile.

But an even larger factor might be that, I've been acquainted with Rainy Lake - and that particular piece of property - for forty years. After turning fifty this year, I started realizing that I probably don't have a lot of 40-year blocks of time left, and I'd hate to spend all my future ones in the same place - experiencing the same things.

Life is what you make it. Some of us choose to wander through life with no ties, and others stay put for most of their time on this planet. Most of us are probably somewhere in between, where we are more mobile during our younger years, but then settle down for awhile to provide some stability to our kids as they are growing up, or to gain some traction and a higher income in a particular profession. And many of us trade some of our wanderlust in doing that.

There are many beautiful places to explore across this country, and probably at least five million waterfront properties throughout our fifty states that can provide a limitless array of enjoyment to their owners...but time allows each of us to only use one at a time. Along with that, there are many new experiences to be had and people to meet everywhere, so any one of those 5,000,000 properties will send you on a different path in life. If you keep the same one forever, you may miss out on some of the best times of your life!

So next time you take a look at a lake property and wonder why the owners are selling, try to keep in mind that it could be for any number of reasons, but most likely it just relates to "the stages of life."

And if you are interested in our place on Rainy Lake, I'll sell it to you for about what I have into it, and I'll throw in all the labor for free! And if I can't find another lake I like better in Michigan or New York or North Carolina or somewhere else - some time in the future - I just might end up back at Rainy in years to come, but hopefully with a lot of new experiences to look back on.

Lake Cabins versus Lake Homes

2009-07-28T22:12:00.002-05:00

There was a comment recently on this blog, which was really more of a question on my thoughts pertaining to the difference between the lake cabin market and the lake home market. Or if there is a difference at all.

One thing many of my clients have heard me say over the years is to make sure they were buying a cabin where they want to have a cabin. In other words, if it is going to be your getaway you may want to know that it feels like that ahead of time.

Although there are many wonderful properties on lakes throughout Minnesota and Wisconsin, some areas have turned into what feel like residential neighborhoods with the majority of the owners living there full time. Those people many times have to get up for work each day and don't enjoy loud parties, laughing and music late into the night out their windows.

But cabin owners often have a different goal, and that is to wind down away from their daily routine...which sometimes means extra friends and family to help them in that process. And singing, joking, laughing, water-skiing, yelling and late-night campfires may all come into play, sometimes creating problems between neighbors.

Obviously, people live full-time on lakes everywhere. But as you get into more remote locations away from population centers, there may be more leniency toward weekenders and off and on "weekdayers" that might disrupt the solitude now and then.

Lake areas that are only a few miles from the Twin Cities were once mainly vacation homes and cabins, but today you won't find a lot of them left. If you want to have yours there, you may not be quite as welcome as you would a little bit further away. And if you're thinking of setting up a campground on your 50 foot lake lot for a few days (no matter where it is) - with some of the campers relieving themselves in the neighbors' bushes, along with disposing their beer cans in their yards - you might have a hard time getting invited to the neighborhood gatherings you don't host! Make sure you keep that in mind as you choose the setting that works for your needs.

I may have swayed some from the question about the contrast in the two markets currently, but I think it is important to understand the overall difference between an area that feels like it is meant for cabins...and one that may not yield the same emotion. And it certainly isn't only tied to lakes around the Twin Cities; you will find this same type of variation of properties around communities as small as Grand Rapids or Bemidji as well. It's just that the neighborhood-like atmosphere around the lakes won't extend as many miles away from the center of town as it does in the more populated areas.

It seems that at the present time the actual lake cabin market may be a bit stronger than that of the lake home market. But I think that part of that is due to the fact that some smaller cabin properties have dropped into a very affordable price range as low as $150,000 to $200,000, which was nearly impossible to find anything in a couple years ago. Many people that were once priced out of the lakeshore market completely are now back in it again based on this correction of prices, and that is seeming to spur the cabin sales.

As this activity has picked up in the lower end, it also seems like we are starting to get more contacts in the next price ranges above that than we were just a month ago. And we have also begun to get more of the calls like we used to, where people are looking for lake homes two or three hours away to retire to. Perhaps things are turning around in front of our eyes without us really recognizing it is happening.

I do think that some of the early buyers are now starting to see the values on many of these great lake properties that are priced like they were four or five years ago. If you are thinking of joining them, now might be the time.

Looking For a Few "More" Good Agents

2009-07-01T23:30:00.004-05:00

I don't know if the market finally turned, but these last two weeks have been about the busiest we've seen in at least a couple of years. Most of the buyers I've talked with tell me that they feel it is time to jump on something now, before prices turn back the other way. I think they are probably right, and I also believe the first ones back in the market are going to end up doing pretty well in the long run.

I've mentioned during the past few months about the incredible amount of visitors and page views we have seen on the website this year. That gives a strong indication that people are interested in making a move to a lake place. But in the last couple of weeks, we have been absolutely inundated with leads coming from prospective buyers, so it seems that many of them are finally coming out of hiding.

Lakehomes.com has become a busy portal for waterfront properties, and each of our agents has the unique ability to act as an exclusive representative for his or her market area on the site. Because of our top search engine results, and the added exposure we can offer, sellers are increasingly aware of the value in having their property listed on Lakehomes.com. And our local experts help assure that these sellers understand realistic values in the ever-changing market we are in, so that this added exposure produces the best results for their clients.

But several of our agents have also become very busy with the recent influx of buyers who need help now. Besides wanting basic information on individual properties, many are asking for a knowledgeable agent to assist them in the purchasing process. They expect that Lakehomes.com agents will be able to fill that need, and we don't want to disappoint them!

At the present time, we have quite a few areas across Minnesota and Wisconsin where we could use some extra coverage. Many of our agents can handle large geographic areas quite well, but when they get busy it can be difficult to meet everyone's needs. We'd like to make sure that each prospective customer who requests information and assistance from us - whether buying or selling - gets it immediately.

If you would like more information on our company, just give me a call at 866-327-9889 to discuss how you might benefit from being associated with Lakehomes.com. Whether you are interested in acting as an Affiliate Agent for Lakehomes.com under your existing broker, or an actual agent for Lakehomes.com Realty, you will get the same exclusive rights to your market area. And most important, no matter which method you choose, your clients will get the exact same incredible exposure that Lakehomes.com has to offer.

Dan Anderson
Broker/Owner

A Strange Year

2009-06-24T00:51:00.003-05:00

After doing this real estate stuff for as long as I have, you tend to expect certain things at different times of the year. Generally, everyone gears up for a busy spring market, followed by a typically good summer market. Then when fall comes, the buyers become more choosy and mainly look for good deals. Winter is normally slow in Minnesota, so then we just get ready for spring again.

But the last few years - and certainly this year - it is hard to judge just what to expect in any given month. The economy has dealt nearly everyone a blow, so it is not surprising that people are a bit more cautious. But what is most surprising to me is the amount of interest we are seeing from potential buyers looking for properties online...yet not really making contact with agents or looking at homes in person.

The number of visitors on our website has increased tremendously, so I can only assume that most of those people have the financial ability to purchase a lake property of some sort. Perhaps, everyone is just trying to make sure that prices have bottomed before they jump in.

I don't know if we are at the bottom or not, but it sure feels like prices can't really go much lower. It seems like a lot of sellers are deciding to pull the plug, and just take their homes off the market until things change. Generally, that is a pretty strong indication that we have hit a bottom, so we'll see.

If you are a serious buyer and just waiting for the perfect time to get out and find that perfect lake place, I don't think you will ever see a better opportunity to pick up a great value on a waterfront home or cabin. But unless you get out there and see a few of them in person, you may never know for sure.

Price Dips aren't Permanent...and Neither are Dips in Cabin Floors

2009-06-05T18:08:00.012-05:00

Much of the lake cabin stock of Minnesota and Wisconsin is getting up there in age, closing in on the 100 year mark. And the northern winters, with frost as deep as six feet, have a tendency to make a few adjustments in these structures - many of them built as seasonal abodes just a level or two higher in quality than the even more seasonal hunting shacks that adorn the northern woods.

Our forefathers - and foremothers - were resourceful when it came to constructing the family lake cabin, and generally used materials that were most readily available. Quite often, those were the trees that had grown up on the surrounding land. And since many of them needed to be removed to create roads and open spaces anyway, using that timber for joists and studs killed two birds with one stone.

Spruce logs and rough-cut dimension lumber (in many odd dimensions not available at your local lumber yard) were not quite as sturdy as the kiln-dried variety used today - and foundations were sometimes only as deep as the nearest rock or tree root to the surface. But who cared about a little bounce or shifting here and there? These places were meant to have fun, and late night drinking parties would cause the floors to seem uneven anyway. So as long as the inhabitants were a half a bubble off, the floors might as well be that way, too!

Back in the twenties and thirties there were still a lot of choices out there when it came to finding a good place to throw up a lake cabin. Even on the most high priced lakes of today, you could find perfect sandy beaches on large acreage plots nearly anywhere you wanted...and at prices even lower than they are this year.

As time progressed the lakes became more developed, and some of those historic cabins disappeared in favor of more modern - and much larger - "lake houses" that took their places. But one intriguing aspect of old cabins is their rustic and authentic charm that is very difficult to replicate, so many of those original cottages grew over time to become "lake houses" themselves through a process called "adding on," which helped retain a bit of the original character that gave the place its ambiance. Sometimes, though, the "adding on" only occurred on the sides and the top of the original structure...and not underneath. And when you increase the mass of any object, without beefing up its support mechanism, something will generally give.

There are two phrases that I've heard more than any other from prospective buyers over the years, as I have driven them from one house or cabin to the next, in search of the perfect combination of lake home; lakeshore type; lake size and quality; lot size; and likely lifestyle they may find in this location.

The first phrase is more often related to actual lake home buyers and goes like this: "If we could just move our house to this lot, it would be perfect." Since I know they are transferring in from Pittsburgh, I find it hard to believe they would pay the transportation costs of their entire home for that distance, so I just drive on to the next property on our list instead of getting off track checking on UPS charges for something like that.

The other common comment comes from lake cabin buyers, and it makes quite a bit more sense than the first one: "We already have a house; we want something that feels like a cabin." What they are really saying is, "Find me one of those places built 80 years ago filled with character. But, since I don't have the knowledge or the time to fix it up, find me one in good shape."

Because a lot of lake cabin buyers do like the true cabin feel, and because a lot of those early cabins also have some of the most prime sandy lots due to their original owners getting in at the head of the line, the older structures are attractive. But there can be a few issues that need to be taken care of, and one of them is dipped or sloping floors.

This is certainly a roundabout way of getting to the main subject matter of this article! But now I'll try to keep on track.

If the place has been there for a long time, it is probably done moving. It may still head up and down a bit over the freezing and thawing seasons, depending on if you leave it heated or not over the winter. But it should pretty much settle in again at the same level once the frost retreats.

There are a couple different methods you can use to bring sagging or sloped floors back to a more level state, and one may be better than the other depending on access to the floor joists and quality of flooring currently in place. Also, if those dipped floors are on the second story, it is quite difficult to adjust the entire house from the bottom up without affecting most of your doors and windows at the same time.

Whatever method of adjustment you decide is best, you should first make sure that everything is solid under the structure. Sometimes you will find cracked or rotten floor joists that need to be replaced or given extra support. Don't add any more weight onto an already faulty infrastructure.

Once you know everything is solid below, then you can begin to bring your floors back to level. If there are minor sags and soft spots on the main floor, and you can easily get under the structure, you can use jacks to slowly bring up those areas to the correct height, and then re-support each of those spots. You may have to do this over time, as wood doesn't not like to make any quick decisions in changing its shape (unlike people, who make quick decisions on changing their shapes for the better, but don't often follow through with it). But if you have the patience, you will typically be able to get your floors quite level again with this procedure.

Another method of leveling is to remove the underlayment and subfloor in the areas affected and either add new, straighter joists, or scab onto the ones that are there. You may or may not have to do this throughout the entire room, but it can be a lot of work if you have a large area to repair. And if it is an upstairs area of the house or cabin, you may run into insulation, plumbing and electrical wires between the floor and the ceiling below, so you have to use a lot of caution in this process.

Fortunately, there is one other method that is not as intrusive as the removal of the flooring system. Instead, you can find your highest spot in the floor and build your floor up to that level. Essentially, it creates a new subfloor over the old floor, and stiffens everything up along with making it level again. You will lose about a half inch of height in that particular room, but unless you are already nearly seven feet tall it should not affect you much.

You will first need to run a straight-edge from the high point to other areas of the room (a long straight board should suffice), and then run a level on top of that to see what thickness of shimming will be required to raise the floor. Then, figure out the surface area of the room for your new layer of flooring. If you are going to run carpet, floating floor, linoleum, or a similar finished flooring product, then a half inch layer of plywood works well for your new underlayment. So now you just have to figure out how much of it you need for the entire room, and what other materials will fit underneath it to support it all.

Once you've figured out the difference in height from the high point to the low point of your floor, you should use sheets of plywood, OSB, or another product in various thicknesses ranging from 1/4" to the total thickness needed, or be able to stack them to get to that thickness. So, if you have a 2 inch drop, you might want sheets of 1/4", 3/8", 1/2", 5/8" and 3/4". Then use small pieces of each thickness to slide under your straight-edge to see what the actual total thickness is needed to support that 1/2" plywood sheet just perfectly, then measure the distance needed for each thickness before it begins to push the straight-edge up again. You should also have a couple bundles of 1/16" construction shims, which are 3 foot long strips of cardboard that can be stacked to fill any thinner gaps.

If you have a large drop in the floor, it is easier to build the floor back up throughout those regions with larger sheets of plywood, and then run two inch strips of your shim materials over that new surface to fill in the remaining gaps. Smaller dips can be remedied more easily with just using the correct thickness of shim strips off of the existing floor. You should run each strip no more that about 6-8 inches apart to give the best support to your new layer of flooring. If you go much wider than that, you will tend to get some bounce between those new shim supports.

When all the shims are in place and level, you can put down your new layer of flooring with subfloor screws no more than one foot apart throughout the surface. Make sure you run the screws directly into the shims, instead of the gaps between the shims, so you don't pull down on the unsupported areas of your new floor. Now you can add your new baseboard, and trim any doors that may be too tight with the higher level of flooring. You will find that your bounce in the floor will be gone, and it will feel like a new room.

I've shown lots of interesting cabins over the years that had similar issues to those we have talked about here. With the right materials, and a few days of focused determination, you can have that rustic and charming lake cabin...and level floors to boot!

Important Note to Lakeshore Sellers

2009-05-28T12:56:00.009-05:00

In the old days it used to be easy to choose a real estate agent to sell your lake home or cabin. You just needed to call a few in to give you a price, and then pick the one you liked the best. Most everyone had the same marketing plan:

1. Put up a sign
2. Advertise in the newspaper
3. Advertise in local real estate guide
4. Put in MLS (if available)
5. Do open houses
6. Take calls
7. Get offer
8. Go to closing

And a lot of them wore cheap suits and drove Lincoln Continentals, so it was hard to opt for one over another based on appearance alone.

Once in awhile an agent would even promise to go knock on neighbors' doors to see if they knew of anyone interested in buying a place on your lake (not a bad idea). Some would promise to make fancy brochures that they would leave on your kitchen table, and even put up a brochure box at the end of your driveway (which many times would end up being empty). Or an arrow or two out on the road (which many times would end up missing). And when the seller called the office to complain about some of these promises not taking place, there was no voicemail to leave a nasty message on...only a receptionist with a little pink notepad.

Those were the good old days!

But now, life has become complicated. Most people who own lake homes and lake cabins have been there for awhile. They aren't as versed in a lot of the new technologies that seem to inundate us each day. And to think about Twittering to create a successful sale, or spend a good part of each day social networking with strangers - hoping to find one who is the perfect match for your waterfront real estate - might send shivers down your spine.

Truthfully, I don't know what works and what doesn't any longer. What I do know is that nearly every real estate agent boasts about having multiple websites they can display your property on in hopes of attracting an interested - and qualified - buyer. Some of them say your listing will be on nineteen sites, others promise it will show up on 29 of them, but most of them have no idea how they really get there...or if they ever do. There are all kinds of automated feeds that send listings to everywhere these days, but they may or may not be an effective means of marketing, since buyers still have to find them...and then also find your property on them.

I also know that if I spent my day trying to Twitter my listings away, I probably wouldn't sell too many. It might be like knocking on doors all day trying to find just the right buyer for each property. And that doesn't seem real efficient to me either.

When it comes right down to it, selling real estate really hasn't changed all that much. There are only a few things that are important in creating the sale, and here they are:

1. Price your property corectly (in this market it is more important than ever).
2. Clean up clutter and fix anything that needs fixing inside and out.
3. Think about where your ideal buyer might come from. If you have a lake property, most buyers will be from somewhere else, and they may not even know for sure where they want to end up. To find these types of buyers, widespread - and targeted - exposure is the name of the game.
4. Choose an agent who will be honest with you and get you the type of exposure that will put you in front of that ideal buyer.
5. Hope for the best!

In over 20 years of selling lake properties in many parts of Minnesota and Western Wisconsin, I have always tried to be as upfront and honest with potential sellers I possibly can be. I probably missed out on quite a few listings where I was too honest, whether it had to do with realistic pricing or just getting rid of the orange shag carpet. Not everyone wants to hear the truth, but you are not hiring me to be a liar. It won't do either one of us any good in the long run, and you will most likely still be in the lake home that you didn't want to be in any more - putting the dock in an out, raking the beach, fixing the plumbing...and maybe even replacing mechanicals that start to wear out along with your 732 day old listing on the MLS.

As much as possible, I have tried to get my agents to follow these same guidelines. As a company we don't get all the listings we interview for, but we generally still feel good that we gave the seller the best information possible to make a well-informed decision.

There are all kinds of reasons sellers choose to work with - or not to work with - certain agents, from personality conflicts to some of the other issues I have touched on here like pricing and condition. But when it comes right down to it, you still have to get that perfect buyer to your door one way or another, so your main focus in choosing how you will go about that should be on the best marketing plan for your particular property in this day and age.

Lakehomes.com is one of the most widely viewed waterfront real estate websites in the entire country because of its simple and highly targeted name, along with incredible search results. Not only that, but it has the information waterfront buyers are looking for, and it keeps bringing them back. And if your listing is in Minnesota or Western Wisconsin, you can't find a better place to expose your lake property to an incredible amount of likely buyers each day.

The graph at the top of this article represents our page views from visitors to our site each day since the beginning of 2009. As you can see, we have gone from about 1,000 views per day to over 20,000 views a few days ago, since our numbers started climbing in February. That's a 2,000% increase in traffic in just the last few months.

For the most part, those aren't buyers looking for in-town starter houses, horse farms, convenience stores, or condos for sale along the boulevard; they are lakeshore buyers looking for places like yours! While most other websites include the above property types along with their waterfront offerings, Lakehomes.com makes it easy for lakeshore buyers to find exactly what they want without having to filter through all the other things they don't. Because of that, we also make it easier for those buyers to find your lake home, cabin, lot or resort when it comes time to sell it.

The National Association of Realtors found that 87% of buyers were now using the Internet to find real estate information online in their November 2008 Profile of Home Buyers and Sellers. If that many people are out there searching online overall, and if that many targeted ones are showing up on our site each day, isn't that where you might want to be, also?

Like I said earlier in this article, selling real estate has really not changed all that much over time. It's just a matter of using common sense to figure out how to get your property noticed by the most possible likely buyers for it once it is properly priced and well-presented. Whether that is on Twitter, through the local newspaper, or handing out flyers door to door, I don't don't know the answer. But some people are having pretty good luck with that on Lakehomes.com!

Giving Visitors What They Want

2009-05-12T19:53:00.008-05:00

Over the last several months you have probably recognized some pretty drastic changes with this website. During the past thirteen years, we have brought the Lakehomes.com name from one of the first online niche real estate destinations to a regular stop for those who are thinking of buying or selling lake properties in Minnesota and Western Wisconsin.

As a visitor, your main purpose of using this site - or any site for that manner - is to get the information you want. And...you want to be able to get it without a lot of work. Our goal has always been to fill that need to the best of our abilities.

In February, Lakehomes.com took on a new look. Instead of just being a website for Lakehomes.com Realty and its agents, we decided to blend the site with both agents from our own real estate company and local experts from other companies who could give you the best information and service possible. So, instead of just seeing agents from Lakehomes.com Realty on our site, you may find those from Edina Realty, Coldwell Banker, Keller Williams, or any other company where we have teamed up with a local expert who we feel can give you the lakeshore expertise you need.

It is a great combination effort. And whether you are a buyer or a seller, you can be assured that you will be able to connect with a real estate agent who understands the local market - or markets - you are focused on.

From everything we are seeing, it is exactly what you are looking for. The number of visitors on the site has increased about 400% since mid February, and our page views have seen about a seven-fold boost. In these days of "way too much information," it seems we are providing the refined data that people are looking for...at least as far as waterfront real estate is concerned.

We will continue to grow into more markets - and provide more localized information and expertise - as we move ahead. But whether we remain a great informational lake property website for Minnesota and Wisconsin, or a national brand, we promise to continue to bring you the information that you are looking for as best we can.

As we continue on our quest to be the ultimate waterfront real estate portal, we intend to add business directories, rentals, and other services to help you find all the information you need in one online destination. So when it comes to lake properties, and information on the areas surrounding them, you shoudn't have to go anywhere else - other than Lakehomes.com - to find exactly what you need!

What's Up...Dock?

2009-04-28T11:23:00.005-05:00

Back in my early days on Rainy Lake I had a construction company called The Dock Doctors, and to go along with that I acquired the nickname Dr. Dock because of my many years in the business. With the big 5-0 starring me in the face tomorrow, I guess I was reminiscing a little about those simpler times more than thirty years ago. Or it could be that the pain in my back is making me think about it.

During my real estate career, I have had plenty of opportunities to strike up conversations with clients about different types of docks, and the benefits or drawbacks each one might provide. Roll-in docks and sectional systems are the most common on the majority of Minnesota lakes, with a permanent dock on pilings evident here and there. And of course you see a lot of floating docks used for add-ons, swim rafts, and even for the entire platform now and then.

But to my surprise, most people south of the larger lakes up north have never heard of crib docks, which are what I spent most of my dock building days specializing in. And last weekend I got to experience the combination of increasing age and decreasing strength, as I spent two days dismantling decking and timbers that had become a bit skewed from shifting ice over the course of the winter - and then rebuilding the crib to its former level status.

To build a crib dock from scratch, you need an ample supply of larger rocks and boulders that you can find at the bottom of the lake and then dive underwater to pull them out. If they are too heavy, you will drown if you don't let go of the rock on your way up to the surface; if they are too light, they won't do much to hold the crib down. So, it is important to find the ones that you can just barely lift out of the lake and into the crib or an adjoining platform.

You should also be careful to not drop the rocks on you as you are struggling with them on their way to the surface. Many times there is a good supply of slime attached which makes them kind of slippery. But I've learned that the slime doesn't seem to matter as the rock heads back down to the bottom crushing your toe in the process; it always seems to land quite directly instead of slipping off your foot painlessly.

If your rock supply is intact, you can then decide where to place your cribs. A crib is simply a grouping of timbers of certain lengths criss-crossed back and forth with the boulders thrown inside it to hold it in place. It is kind of like a Lincoln Log fort, but there are spaces in between each of the timbers that run in the same direction. Once you get your crib level and at the proper height, you can then run your stringers to place the decking on top of.

The nice thing about crib docks is that they are much more sturdy than temporary dock systems. If built correctly there is very little bounce, and they make a great place to position tables and chairs out over the water. Because you don't have to remove them each year, you can create wider areas for entertaining that may be hard to do with other dock systems, as long as state, county and local governing codes allow it.

But crib docks also have a negative side to them. With wide expanses of water - such as the three miles across to Canada at our Rainy Lake cabin - ice flows sometimes take their toll on these creations. And high water levels can also be quite damaging when five or six foot waves are added to them.

So, back to this past weekend. Right after I had gotten all this bull work done, and got the rebuilt crib level and the stringers in place, I heard a crunching noise along the edge of the dock. Thirty mile per hour east winds were moving the entire ice flow, and piling up ice at a rapid rate. And my perfectly level crib was no match for its power.

To my dismay, the ice lifted up the crib - rocks and all - and slid it over about two feet to the west, lifting it up on top of a larger boulder protruding from the bottom of the lake. Needless to say, that crib is no longer level, and those two days of exercise may have been only an exercise in futility for the time being.

But, it is only a couple months until the water warms up enough to go diving for more boulders. So even with another year under my belt, I'm guessing it will be good as new by July!

A Tale of Two Cities

2009-04-12T19:44:00.007-05:00

I was in the Twin Cities last week and I was a bit surprised to see that the ice was out on many of the lakes around there. Although I didn't see many boats out on the waters yet, that time is fast approaching.

On the other hand, Easter at our cabin on Rainy Lake didn't look much different than it did at Christmas. Much of the ground is still snow covered, and four wheelers and snowmobiles are still running - without too much concern - across the ice.

With our full-time residence set almost equidistant between these two locales, in Grand Rapids, it is sometimes easy to forget the variation in the length of each respective season. Wherever you live, you tend to become acclimated to that climate, and you don't always realize that just a couple hundred miles can make a huge difference in temperatures, and the progression of each season.

Growing up in International Falls, it seemed normal that there were only a couple months of good swimming weather each year. And although winters were obviously long, we didn't seem to mind them back then...and were even proud of our ability to survive the extreme weather patterns. I guess we didn't know any better - and we couldn't have done anything about it anyway!

If the Minneapolis and St. Paul Area is where you were raised, you are probably used to having only a few months of tough winter weather. And at first you might question the value of having a lake place where the summer months are that much shorter.

But it seems that most people who live in the Twin Cities - and own cabins in Northern Minnesota - are more than willing to trade a couple months of warmer weather for the solitude and extreme beauty of an up north lake. And sometimes they just like to be a bit further away from work and their everyday activities to help them relax. However, with the thousands of lakes to choose from just an hour or two from the metro area, there are plenty of people that decide to have their vacation home close to their residence for ease of use - and to maximize their time while the ice is off the lake.

When it comes to shopping for lake properties, the spring market definitely gets going much earlier in Southern Minnesota than it does on the northern border. It is a lot easier to see where the sand beaches are when they are fully exposed, and there is an emotional appeal to the sounds of waves lapping against the shore.

But if you can imagine those same scenes before they take place while you are viewing properties up north, you can beat the rush...and sometimes come across some pretty good deals before others show up to fight over them.

Just like the weather, people have their own cyclical patterns. Many of us are so tired of the long winter that we don't even want to go outside this time of year until we see some obvious change. And then like lemmings, we all go out together on our next adventure: such as cleaning up our yards, waxing the boat, or shopping for a new lake cabin. It's almost like we are programmed to come out of the house when when it hits a certain average temperature.

So if you can break the pattern and get a jump on the spring season, you might find yourself with a lot more options to choose from when it comes to lakeshore real estate. But even if you don't find the perfect lake home or cabin right away, you'll at least get some fresh air. And that's probably not such a bad thing after a long winter indoors.

Happy Easter,

Dan & Sandy

A Few Statistics for 2008

2009-04-05T20:30:00.002-05:00

Even though our focus at Lakehomes.com is mainly lakefront, riverfront, and other recreational properties, I think it is always helpful for waterfront buyers and sellers to have a good understanding of what is happening in the real estate industry as a whole. Each year the National Association of Realtors performs many surveys to try and find out how various areas of the industry are trending, and I wanted to give you some of the statistics that came about from their Profile of Home Buyers and Sellers for 2008.

You can read the entire survey at the link above, but some of the most important items that I noticed were the fact that 87% of buyers now use the Internet to search for homes - up again from 84% in 2007 and 80% in 2006. However, 85% still use real estate professionals to help them in this process. So although the information for nearly all listings is available at the buyers fingertips, there is still a need to have agents give guidance during the process.

When buyers were asked about how they found the home that they purchased, 34% said it was through a Realtor, while 32% found it on the Internet. Only 3% of buyers found their new home in some type of print ad.

As a seller, these are the types of statistics should be of the utmost importance when you decide who to list your property with. And if your property is on water, remember that it is even more likely that a buyer will be doing their searching online...because they are more likely coming from a distance than buyers of off-water properties.

Many agents and brokers have been reluctant to minimize their presence in print publications because that is what sellers have been used to seeing throughout the years. By making sellers "feel good" about seeing their home in the newspaper or a magazine, the agent can prevent some of the potential criticism if there is no activity in the way of showings. But if all statistics are pointing to the importance of new forms of online marketing - such as videos and other creative measures - to give the potential buyers more information by way of their keyboards, then it seems that that is where the marketing focus should be!

2009 may or may not be a good year in real estate. I am optimistic that it will be better than last year, but there is still a lot of inventory - which means a lot of competition if you are going to be selling your lake property.

In your search for the best method to expose your lake home, cabin or land to the most possible prospects, evaluate your options in the way of local agents and their websites. A strong Internet presence may not be the only reason your place sells...but obviously, in this day and age it can't hurt!

Lakefront Rentals

2009-03-29T11:02:00.005-05:00

Over the years we have had a considerable amount of requests for information on lakeshore properties that are available to rent in various areas of Minnesota and Wisconsin. It is quite common for potential waterfront buyers to try out the area first by staying for a short time to see how they like it. And some people need to make a quick move with the intention of buying a lake home in the next several months to a year, so renting on the water for six months or more is very attractive to them.

But until now, we have not made lakefront or riverfront rentals a major focus of our business. We try to help out when we can, but we have generally worked with properties that are for sale instead.

With the recent redesign of our website, we are now able to tie available waterfront rentals in with our Featured Listings in each waterfront region. Lakeshore property owners who are interested in renting their places - for any period of time - can now add them to our site in the exact locations that these people are searching. What better way is there to get your lakeshore rental seen by this highly targeted group?

But...there is more!

Besides just putting your listing on Lakehomes.com, you will also be able to add it to two of our other waterfront websites...giving you an even better chance to find the best potential renters for your lake home, lake cabin, waterfront townhouse, or resort property. And with thousands of waterfront prospects combing these sites each day for properties, there is a pretty good chance you will be found!

If you have a lakefront or riverfront property that you would like to add to our site, just email rentals@lakehomes.com for more information, or call 866-327-9889.

Are We Bottoming Out?

2009-03-22T18:23:00.004-05:00

One of the the key indicators of a bottoming real estate market is when the number of active listings is less than it was the year before during the same time period. Generally, this occurs when less sellers are willing to put their homes on the market at the going prices, combined with a few more buyers starting to take action on the listings that are available. Basically, buyers who have been holding off, and waiting for the most appropriate time to act, become a little more motivated so that they don't miss out on the best opportunities.

Last week, while I was in White Bear Lake chatting with Dwight Zaudtke of Keller Williams Realty - in his typical overly caffeinated state - he was quick to point out that there are noticeably less active listings right now than there were a year ago in the Twin Cities metro area. And he had some other statistics that were quite promising, which showed an increase in pending sales and a lower amount of available inventory based on how quickly it was being absorbed.

Although the Zaud Squad will always back up any real estate services with their hallmark guarantee of stopping their coffee consumption for any unhappy customers, Dwight was not willing to go quite that far on his assurance that the market had totally bottomed out. However, I do think I heard him mention something about quitting donuts for the week if he was wrong.

In any case, these tidbits of market information from various parts of the globe could be your crystal ball when considering the best time to get back into the market - especially the lake property market! It just may be now.

Making Choices and Changes

2009-03-16T20:19:00.006-05:00

Winter in Minnesota is a good thing...for awhile. But then, about mid February, it seems like we have all have enough. We're tired of hauling kids to hockey, early darkness, and wearing coats and gloves; we just want it to end!

So sometimes we get to go on vacation and get away from it all. I was fortunate enough to be able to do that with my family and some friends last week in Playa Del Carmen, Mexico. I guess that was about the same time my cabin got twenty inches of snow dumped on it, but I didn't really watch the weather a whole lot down there.

What I did watch were the people. I guess I am always interested in how others live, and that is why I generally enjoy traveling by road rather than air. No one really "lives" on a plane; they mainly sleep, read, and make odd noises now then.

On the other hand, it was interesting to me to find out more about the people who worked around Cancun, Playa and Cozumel. Although it is almost an obsene disparity between the majestic resorts along the water and the barely habitable hovels on the other side of the highway, these people work with a non-ending conviction and no obvious complaining. Perhaps because there are so many others to take their place, or because they are striving to get ahead.

Tips are a big thing in Mexico. Wages are quite meager, so those that have worked their way up to a job that pays tips can do quite well. There are over 1,000 taxis just in Playa alone, and each of them is white. Coincidently, there are also 1,000 different prices to get to the same location, and unlike up here where you have to wave down a taxi - and get one if you're lucky - the drivers down south are out on foot tracking down business...and making deals in hopes of better tips.

Long hours are common in Mexico. Our shuttle driver had 62 trips lined up for Saturday, from 4:00 AM until 11:00 PM. He probably makes several hundred dollars or more per day and does OK. He also works six days a week, as do most of the people around there - except the ones who work seven days. He was talking about taking a vacation to Minnesota, but thought it would be a bit cold yet.

But the guys in the restrooms impressed me the most. They weren't handing out woven towels with refreshing fragrances like you might see at a fancy hotel here in the states; they were in bathrooms barely large enough to turn around, and tearing off chunks of brown paper towling while they pointed out the soap dispenser and hit the handle on the faucet. The tip jar was right there so it was kind of hard to avoid, and I guess if someone wants to stand there for sixteen hours doing that job I can flip them a buck. Those dudes may bring in $1,000 a day since some of the drinks are quite large in the bars and restaurants where they worked.

Many of the people in Mexico don't have a lot of choices - it is obvious they do what they need to for survival. Even though our economy has been tough, we in America still have so much more opportunity that any place else on earth...if we allow ourselves to make seemingly difficult choices, and changes now and then.

Sometimes it just takes getting a break from our everyday normality - and The Weather Channel - to realize it.

Where Have All the Agents Gone?

2009-03-07T15:11:00.004-06:00

If Pete Seeger were to write his song, "Where Have All the Flowers Gone" today, it might be focused on the changing real estate climate and the economy. I've noticed that there are a lot less real estate agents in the business these days, and many of them have had to look for new jobs, instead, due to the sluggish market.

Quite a few of these agents are the same ones who jumped into real estate during the last few years when they thought this was easy money, with little more invested in their business than a few weeks of real estate classes. Instead of getting rich quick, some of these "newbies" helped perpetuate the escalating prices, often willing to list properties at any amount just to beat out the competition for the listing. And many sellers chose those inflated numbers over realistic pricing and the experience of more seasoned agents...in hopes of hitting the jackpot.

Soon, neighbors also wanted a piece of the action and put their homes on the market at prices even higher - justifying those values with the rationale that their property was much better than the one down the street for sale at 25% over value. It became a crazy time, where pricing was set by prices on properties for sale, rather than by properties that had actually sold. Although, there were still enough buyers in the market so that a property here and there would actually sell at those false prices, and lenders could find enough comparables to support loaning money on them.

But because a lot of these newer agents didn't have as much to lose, they could jump out of the business just about as easily as they jumped into it. And many did.

And now, due to an increasing array of factors, many of the experienced agents - with vast knowledge of home values and strong representation abilities - are also having to look for other jobs to survive the slowdown. Because of this, there will almost definitely be some dramatic changes in the industry going forward, and other concepts may emerge.

Sellers will still sell, and buyers will still buy, but many of the agents who put all of their effort and expertise into helping these two types of clients - with no upfront fees - may have a harder time committing those long hours of playing tour guide without some assurances of income. Besides that, some will have to juggle their time with other employment, and will not be available on the 24/7 schedules that they have advertised in the past. So we'll have to see where this all shakes out.

But those other jobs are getting hard to come by, as we see on the news every day. And it's not just the agents who want them; everyone seems to be looking! So Pete's song may now go something like this:

Where have all the agents gone, long time selling.
Where have all the agents gone, who sold those homes.
Where have all the agents gone, gone to good jobs...every one.
Oh when will they ever learn, oh when will they ever learn?

Where have all the good jobs gone, long time supporting.
Where have all the good jobs gone, that paid the bills.
Where have all the good jobs gone, employers cut them...every one.
Oh when will they ever learn, oh when will they ever learn?

Where have the employers gone, long time hiring.
Where have the employers gone, who we counted on.
Where have the employers gone, the banks have closed them...every one.
Oh when will they ever learn, oh when will they ever learn?

Where have all the bankers gone, long time lending.
Where have all the bankers gone, who financed homes.
Where have all the bankers gone, to get a bailout...everyone.
Oh when will we ever learn, oh when will we ever learn.

A Little Tweak To Our Design

2009-02-23T19:49:00.004-06:00

A few months ago we began to change a few things on our website to give it a fresher appearance and more functionality. You probably didn't notice much difference until the last couple of weeks when the main design alterations began to appear. It is something we've wanted to do for a long time, but these aren't overnight projects so we tend to put them off when things work well. On top of that, we have several other waterfront websites that constantly need attention to keep operating effectively, so time is always a factor.

The changes at this time are still ongoing. Whenever you redesign a website you miss a couple of things that you would like to have, or notice items after the fact that seem out of place. Those fixes will come, but for the most part we are happy with the cleaner look and more efficient usability for our visitors.

Our site at Lakehomes.com has been a valuable tool for waterfront buyers and sellers since 1996. Each year we have tried our best to keep it that way and make it better as the technology became available to do so. Although some people may like the looks of the old site better, there are also those who carry an affection to things from the past such as rotary phones and 1965 Impalas. There is nothing necessarily wrong with those items, but sometimes new ideas make life a bit easier. We hope that our new website does that for you also.

Please be assured that we will continue to make Lakehomes.com a great place to visit in your quest for waterfront properties in Minnesota and Wisconsin. We will attempt to provide you with the most relevant content, knowledgeable lakeshore agents, and a comprehensive supply of listings to peruse. For additional information on any waterfront areas or real estate information, just give us or any of our agents a call or email.

About Price Decreases

2009-02-15T12:26:00.003-06:00

There was a comment on my last blog about what I have been seeing with price decreases in the market. I don't know if there is a general answer for this, but overall I have a gut instinct on how this is playing out.

About three or four years ago everything was moving along just fine...actually a little too fine. Interest rates were low and loans were extremely easy to come by. In fact it got a bit ridiculous in that some buyers were not happy with just putting nothing down on home purchases; in addition they wanted money back at closing. That, combined with a huge influx in new and inexperienced agents, created kind of a mess out there in property valuations.

As we all know now, the last few years changed that free-for-all mentality. Now the challenge has shifted to getting consumers feeling assured that values won't continue to decrease on their property purchases. Even lake properties, which were always considered a safe haven along with their attributes for enjoyment, have a smaller group of serious prospects hunting for them.

But, that doesn't mean that the market has dried up. The number of visitors to our website at Lakehomes.com has about doubled in the last two weeks, and we have had an increasing amount of calls and emails coming in. It seems to me that there is some pent-up demand in the waterfront real estate market, at least, but buyers have a lot of inventory to choose from...so well-priced properties and those with the best beaches and other amenities will be in highest demand.

Getting back to the question of how much prices will have to decrease for everything to turn around, this is my answer:

Good properties on good lakes will always be in demand. The problem is that most properties aren't good. I have found over the years that about 80% of buyers want sand beach, or at least a firm shoreline. If you have a mucky bottom, you probably paid about half as much for your lot as someone with hard sand frontage...or you should have if you were being represented by a knowledgeable waterfront real estate expert. Obviously, there are already less possible buyers for this type of lot -- no matter how nice the structure is -- so you will have to be priced accordingly.

Properties that are high up on hills overlooking the water have the same issues. Most lakeshore buyers are either looking toward retirement or have small kids, so this type of property is generally not conducive to either of them. Some people love the views that these eagles nest properties have to offer, but many others see them as a burden for access to the lake. Be prepared for longer market times on these types of homes and cabins, too.

Some people like the idea of quiet lakes that offer solitude from boaters and the constant assortment of activities available on larger water bodies. The key word here is "some" -- because "most" enjoy the idea of having lots of things to do at the lake. Again, there are buyers who will have the same mindset of living in peace, but be prepared for a smaller pool of them.

Lake cabins and homes with 70s decor, or designs such as split levels that feel more like they belong in Bloomington than they do on a Northern Minnesota lake, also don't typically sell as well on the water -- unless the lots are truly desirable! Most buyers looking for lake properties want to feel like they are at the lake, not like they are buying another house in the city. If there are things you can do to open up walls, add some tongue and groove to the interior, or create a more interesting waterfront ambiance, you will have better luck grabbing one of the buyers in today's market.

And then you have the homes and cabins that feel like lake places on good, clear recreational lakes with level lots and sand beach. They might be older cabins set amongst towering pines where the lots have sat undisturbed for decades, or they could be well-designed newer structures with quality finishing that have taken full advantage of their prime lots and views. If priced within reason, these are certainly the most sought after of all lake properties. I don't believe that demand for these will ever go away. But if sellers get too greedy on pricing these, too, will sit.

So there you have it. I didn't really answer you question...because there really isn't an answer to it. However, there has been a fairly substantial reduction overall in prices during the past year, and there are some pretty interesting properties available at great values right now. Some buyers will recognize this, and others will probably wait too long. None of us know when the bottom will hit, but it generally takes place sometime before we know it is happening.

In this type of market, the best suggestion I can make is to work with agents who understand values and can help protect you from making the wrong decisions. Sometimes, what may look like a good value is really a bad one in disguise. I don't think this is a good time to go it alone thinking you might save a couple dollars somehow, because many who did that a few years back have ended up in just the opposite situation today!

The Spring Market Is Here!!!

2009-02-09T21:43:00.002-06:00

I always enjoy springtime in the lake property business. There is just something that lifts your spirits as you travel from lake to lake through slush-filled gravel roads, sometimes barely passable as the frost begins to fade away in place of wobbly earth behind it.

When I walked outside today it was raining, so to me that was the first sign that lake cabin buyers will be coming out of hiding soon. The second sign was when we received several information requests from potential buyers...who must have also experienced that springtime sensation.

Winters get long up here in the Northland. With the difficult real estate market and fumbling economy we hear about nearly every day, this winter may have been a little worse. But the sun is feeling warmer -- and February goes by fast -- so things can only look up.

And with the drop in prices we've experienced in 2008, this year the early birds may really get the worm!

Don't Forget That Snow on Your Roof

2009-01-29T17:09:00.003-06:00

I know that people who own lake cabins also keep a close eye on our website to see what else is on the market. Some of them are thinking about selling, but they need to be assured that there is some activity before they move ahead with getting their lake property listed.

One of the problems with lake cabins is that they tend to become burdens after people lose interest in them. It may be because the kids have all moved away, or it might be due to health issues, but almost everyone hits a point in their lives when they realize they have extra things they don't really want or need...and lake cabins fit into that category.

Besides the fact that the spring and fall bring a whole assortment of tedious jobs once considered enjoyable, such as getting the water drained and turned back on again - or moving the dock in and out of the water - winter is sometimes the worst. Even though your cabin is closed up, and like an icebox inside, someone should still check on things once in awhile to make sure there have been no major issues. And as the weather begins to give us a few of those days above freezing, you know what will happen if the two feet of snow on the roof begins to melt...from the bottom.

Unless you have a large pitch on your roof, or one that is made out of materials that are entirely waterproof, that water is going to get locked under all that snow. And you know what they say: "Water will find its easiest path." That is most likely straight down through your ceiling!

So, even if you just want someone to take your cabin away and relieve you of all these annual duties, don't let it get the best of you. Take a trip up there, or have someone else do it for you, and get the snow off the roof...before it is too late!

Bring Warm Clothes!

2009-01-17T14:35:00.005-06:00

One thing about specializing in lake properties that isn't so good...just trying to get to them in the winter - and to stay warm enough to enjoy the process. Lake homes aren't too bad, since people generally live in them year-round, but cabins that have been closed up since fall can be a little challenging when you have to trudge through a couple feet of snow to get to the door...and hope you can get both the lockbox and the door open after that.

Even some of the roads leading to Northern Minnesota and Northern Wisconsin cabins may not be on the radar screen of local plow operators, so the hike into those places can be even more difficult. I always try to warn my clients to bring boots and warm clothes if they want to take part in this activity.

A couple years ago I had some buyers from the Twin Cities who wanted to see a real estate listing I had on Crane Lake in mid-winter, which is on the Canadian border. It was a water-access only property, and there was some questionable ice between the end of the ice road and the property. I never think it is very good for business when your car plunges through the ice with clients in it, so we took snow shoes along for the journey and walked a couple miles to the cabin.

There were only a few injuries on that excursion, as the sun decided to sprinkle ice patches around the lake, only to cause one of my buyers to fall several times on the way back as she ran low on energy - but refused to shed her snowshoes. I don't think I sold them anything that day...or ever, come to think of it.

Fortunately, not all of these winter lake property searches are this extreme. Most of the time sellers are wise enough to have someone keep the snow cleaned off the walks and some heat on if they are going to have their lake cabin on the market. But when the heat isn't on, I guarantee you that it will be colder inside the structure than it is outside!

Overall, looking at lake properties in the winter months can be an enjoyable experience. There is no shortage of solitude, as lakes are void of the hum from boat motors, the laughing of children playing in the water, and even the rustle of leaves on the trees. Those are all part of the sounds that bring pleasure to the summer months at your lake place. But the quiet of the other seasons is just as enjoyable for many.

It does seem like some buyers prefer to look for lakefront cabins and homes this time of year. They realize that prices are probably going to be as good as ever, and they want to have their new place before the snow and ice disappear to get the maximum use out of it. A few of those buyers are starting to contact us now to take a look at some things...and we've made a few sales on these types of properties over the past few weeks.

Oh, and one more thing to keep in mind. When you are out searching for lake cabins in the middle of the winter, make sure to ask your agent to make a pit stop at a gas station now and then to use the facilities. It can be a little difficult to find many cabins this time of year with their water turned on!

Agent Opportunities...Like No Other!

2009-01-05T16:56:00.004-06:00

I've been around the real estate business for quite a few years now, and the one thing that has always remained the same is that there is never a shortage of real estate companies willing to hire new agents - both brand new and those moving from another company.

Generally, agents shop around for what they feel is the best deal and the best fit for them personally, and then choose who they want to work for. Many times the honeymoon doesn't last too long though, because they end up competing for business with the other agents in their office. This often leads to the "hoppers" who move from one company to another in search of the perfect home.

However, agents also sometimes realize that the decision to join a particular company may not have been the right one for them. And it is sometimes hard to recognize that before they get a feel for the new operation.

Other reasons to move from one company to another have to do with feelings of stagnation, boredom, or a need to be more independent - which is why some agents choose to start their own brokerages after working under another broker for several years.

At Lakehomes.com, we have a significantly different philosophy than other brokerages. We have gone out of our way to give our agents reasonably protected territories, as long as they are actively selling. On top of that, we are now paying out commissions from 70% to 95%, along with free leads. That allows our agents to have much more control over their respective market areas, and to run their real estate businesses like businesses...which is what ultimately benefits the buyers and sellers the most!

We don't provide fancy offices or a lot of other perks that have to be compensated for by charging higher commissions or junk fees to sellers, or taking it from the agents' bottom line. Instead, we are able to pass along high value at a low cost to our agents, giving them more latitude and flexibility with each client.

But don't be fooled by our ability to operate on a streamlined basis. With nearly all waterfront buyers - and sellers - searching the Internet for available properties and knowledgeable agents, it is not too difficult to see why our waterfront specialists are so successful in finding buyers for their waterfront and recreational listings.

A Google search such as Minnesota lakefront real estate or Minnesota waterfront property will generally display our site at the top of all results. And although it is impossible to be the number one result on every search all the time, you will typically see us within the top few on most every community or lake area name across Minnesota with terms like "lakefront," "waterfront," etc.

Here are a few other search terms relating to waterfront real estate that seem to be showing strong search results today for us: Duluth lakefront property, Park Rapids waterfront property, Longville real estate, Minneapolis lake property, Twin Cities waterfront real estate, Northern Minnesota lake lots, Northern Minnesota lake homes, St. Cloud lakefront real estate and Western Wisconsin lake properties...to name a few. You will currently see the same types of results across most of Minnesota, and as we add new listings and agents throughout the Midwest, we are generally displayed at the top of new areas rather quickly.

Search results are no doubt very important these days, in an age where buyers and sellers want specific information quickly. We can easily provide those, and be a great source of targeted marketing for all types of recreational properties. But it's our agents who use this technology to give their sellers the marketing capabilities they desire, and to provide easy searching and ongoing communication to buyers.

So, if you are a little tired of how your real estate business has been going, you might want to try ours. Spring is coming quickly, and now is a great time to take advantage of our differentiation.

If you are a knowledgeable lakeshore agent, and interested in becoming the Lead Agent in your market area, we may be able to offer you exclusive rights to your territory, along with immediate access to all buyer and seller inquiries there. And at listing appointments, you will truly have something valuable to offer...that no one else will be able to.

Oh, and by the way, even if you aren't ready to change companies there may be some opportunity to work together. We send a lot of leads out to various partner agents and brokers in areas where we think they can help the customers best. We just may be able to send some your way! Please feel free to contact me for more information.

Dan

Happy New Year

2009-01-01T13:39:00.003-06:00

This past year has been a challenge for a lot of people, and certainly the real estate industry was one of the hardest hit. Sellers have had a tough time finding enough good buyers to generate reasonable offers - if any - on their homes, and so quite a few of them have decided to hold off for awhile until the dust settles.

Agents have left the industry in droves, with many of them not able to make enough money to even cover their expenses, let alone support their families and have any fun money left over. So...what will be next?

I'm optimistic about 2009. Our page views have shot through the roof on our website since the day after Christmas, and that means there are waterfront buyers out there starting to look already. That is generally what happens after a slow market like the one last year. And the 2009 sales may speed up even more quickly because of the low interest rates!

At the same time, we are making several changes to our overall marketing plan for our listings. In an attempt to make sure we find every possible buyer out there for our listings, we have created several new concepts that are proving quite interesting.

You will be seeing some of these on our website in the days ahead. But, if you're thinking of selling fairly soon, feel free to contact us for more information on how you can benefit from some of these cutting edge ideas.

Remember...the spring market starts way before spring. So don't let it pass you by!

A Few Bright Spots

2008-12-11T15:05:00.002-06:00

There was a good comment today on my last blog article about doing what you do best and staying positive. Those are definitely good recommendations, and we should all try to focus on the positive things going on around us.

As many of you may already know, we also own the websites at LakehomesUSA.com, RiverhomesUSA.com, and OceanhomesUSA.com. In doing so, we communicate each day with real estate agents and brokers across the country. Recently, although sporadic, I'm starting to hear more comments about good things going on in various markets, and that tends to shine a brighter light on days ahead.

Just in the last week, I've had positive comments from agents regarding their markets in California, Alabama, New Jersey, Florida and Mississippi. It's not all rosy out there, but there seems to be some sense of doom and gloom subsiding a bit.

We've also had a few more buyers contacting us recently, and in Minnesota you can't complain about that this time of year. See, I'm already in a better mood.

I spend a lot of time these days sitting at my desk and running this company, so it might be good for me to get outside a little more often. If any of you would like the company of an experienced lakeshore specialist in your search for just the right lake place, give me a call or email and we can get to work on it right away!

Dan

Heading For 2009

2008-12-04T18:03:00.004-06:00

You may notice a slightly different look to our website today. Over the coming months we plan to bring Lakehomes.com to a new level of design and format, and the logo seemed to be a good first step.

You've probably also seen a few video camera graphics popping up to the side of some of our listings, which will make it easier for long distance buyers to get a better perspective of a property before they make a trip to see it. More and more of these will be available in the days ahead.

As the new logo points out, Lakehomes.com has been around since 1996 - longer than any other waterfront website. It is based on the simple concept the "Specialized Agents" can do a more productive job in guiding waterfront buyers and sellers to their desired goal. And with the Lakehomes.com name behind them, our agents have some of the best resources available in Internet marketing and expert knowledge to make sure their clients are getting the exposure and guidance they deserve.

The real estate business has changed immensely over the past twenty years, when I first started my career. The days of sending an ad for a new listing into the newspaper several days in advance, have now been replaced by immediate and thorough exposure for those properties on niche websites such as ours.

As a seller, it is probably more confusing than ever to try and figure out what types of online - or offline - marketing may work best. And with the slowdown in the economy, the decisions you make may be more important than ever.

I have had a lot of calls lately from prospective sellers asking me what kinds of things we can do - or they can do - to attract a buyer to their home or property. The most honest answer I can give is, "I'm not sure." Having great exposure is no doubt a big part in getting buyers to find you, but there will be many other factors that come into play on each particular property...and the expertise of the agent you choose to work with is a huge one.

It has been our goal for many years to provide a deeper value to Lakehomes.com than just as a website to find properties. The site - and the agents you see on it - are an extension of the waterfront niche that we built long before our competitors came around. And from personally working with thousands of lakeshore buyers and sellers throughout the years, we have a pretty good sense of what is important to them, in general.

The next stage of Lakehomes.com will be different from the past. I firmly believe the real estate industry will need to re-tool along with the automakers if they are to come out of this downturn in decent shape. Many brokers have continued to hang on to antiquated methods of doing business, and I don't plan to be in that camp.

So it is now time to move ahead with new ideas. Many of those are in my head, and I'll release them to the website now and then. But the real change will be the philosophy on how the business operates to benefit the consumer the most...far beyond changes in design or added features.

The one thing I'm sure of is that you will see a lot more of Lakehomes.com soon. And...you will see a lot more waterfront real estate sold because of it!

A New Focus to this Blog

2008-11-21T21:50:00.004-06:00

My dad was a math teacher for more than thirty years. I always thought it would be a terrible job trying to create new and interesting subject material each day from a basic foundation that really doesn't change. He was a great teacher, but I think he got a little bored near the end of his career.

There were a lot of other teachers I knew who also seemed like they had lost interest in new ideas as the years wore on them. Some would not even let their students have copies of the tests that they took, because they would surely get passed around and it would be extra work to think up new questions for the following year.

It certainly isn't just teachers that go through these stages during their tenure, but it may be easier to recognize since they tend to focus on a single main subject...from the time they enter their profession until the end of it.

Sadly, many of those intelligent people - who were very motivated when they began their careers - got tired. And that is pretty much the same thing that happens to any of us in time, unless we change our focus now and then.

As much as I enjoy writing about my experiences with lake property and the real estate market in general, the writing style becomes a little stale after awhile. Once that happens, I become less interested in providing new information, and you have less interest in reading it.

You may have already noticed that a lot of my earlier articles provided a reasonable amount of experiential knowledge on what types of things to keep an eye out for when buying or selling lake property. If you haven't read them already, you can easily look back at those jottings to get some insight into my two decades of work in this niche. Several people have mentioned to me how valuable some of that information was to them, and it made them think differently on how to approach the market either as a seller or a buyer.

However, as the 2008 market wained, it got a bit repetitious to think of new ways to talk about a limited bucket of items, like the difference in values between sandy shoreline or the mucky variety. So I started spewing my personal thoughts on several things tied to the economic doldrums. After all, I think blogs should be a direct flow of one's own beliefs from the brain to the keyboard...even if it is off the subject a bit.

Now, as we turn to the last page of the current calendar, I'm also getting tired of this subject. I've seen enough news reports on deflation and bailouts to sicken me for quite some time. So, I'm searching for a new slant to this blog! I'll happily accept recommendations, so if you have some ideas just throw them my way.

But until I get zapped with enthusiasm from some type of turnaround - or at least a teeny little glow at the end of the tunnel - I'm going to look around for subject matter from a few of my colleagues across the country. Maybe with less of a focus entirely on waterfront property, but ideas and successes that seem to be working for people in other areas who are attempting to play the real estate game during in this dreary climate.

So let's quit focusing on the bad news (like the Dow dropping almost 700 points today), and instead turn to all the positive things going on in the world of real estate. If nothing else, it will keep me pretty busy trying to dig some up! And if it helps a few of my readers with their 2009 real estate plans, I did my job.

Dan

Living In The Moment

2008-11-12T18:35:00.004-06:00

They say that time passes us by if we don't "live in the moment." We miss out on all the beautiful things around us by always looking ahead. And later we look back on memories that we wish we would have spent more time enjoying when they were taking place.

Most all of us do it. We are excited to get on with the next stage of our lives, whether it is an upcoming wedding, a new car, a creative marketing campaign, or next month's vacation. But whatever that next big event is on our calendar or in our mind, we pass up opportunities to take advantage of the little things that can truly make us happy.

I believe there is also a variation of this "living in the moment" philosophy called "getting caught up in the moment," but not in the sense of just an isolated event. It could be that a great majority of the American public is now caught up in the moment of how bad the economy is...or seems to be. And this is pretty much just the opposite of its cousin: "living in the moment," because it won't let people move ahead - or even think about moving ahead.

It is no doubt true that there is a wide array of financial difficulties tied to this economic downturn. Financing is more difficult, and equity has been eaten up rather quickly. But there is still a lot of capital available, and we are seeing more cash sales than we used to.

No matter what situation we are in, there is always a group of people that look beyond the news stations and the barrage of negative reports, and just charge ahead. They don't do it carelessly or haphazardly, but there seems to be another driving force of self confidence involved that gives them comfort in making forward-thinking decisions that others wouldn't risk.

Everyone knows these types of people. Nothing bad really ever seems to stick to them, and they tend to be genuinely happy. Whereas, those who constantly worry about the terrible things that might happen today or next week - or the fact that their 401K has lost 27% of its value and may never come back - cannot pull themselves out this self-perpetuating rut of scarry thinking.

Obviously, real estate has become a large part of this worry. Those who can't seem to sell their homes are worried that the real estate value they perceived as rock solid may never come back, and they don't have enough equity left to even move on with their lives. These are real worries, and there are no great answers to that problem currently. Sellers in this position need to use every resource possible to figure out how to get the best exposure for their properties, and to make them as appealing as they can.

On the other end of the rope are the buyers that would never think of venturing into this imaginary vortex called the real estate market, where they might get swept away in a whirlwind of shrinking values. It's true that something like that might happen, but it's also true that I might get home tonight and find Martians have taken over my house and made "Ollie the Dog" their leader. We just don't know what the future holds, and that is what makes life so interesting.

If we are too petrified to take chances and are unable to consider what types of positive experiences may await us if we do, then we are simply "caught up in the moment." And we will pass by those opportunities, leaving others to take advantage of them instead. Only to later say, "Boy, were they lucky to buy that when they did! I can't believe the price they got that for!...blah, blah, blah, blah, blah!"

That is what is happening with real estate sales right now. Home prices in many areas are similar to prices from 2004, and some buyers who are peering into the future are seeing happy times at their new lake cabin or the enjoyment of an upgraded home they could never have afforded in the past. For many of them, the crystal ball is showing visions of instant equity as soon as this market turns around. They know that buying anything at the bottom is a matter of luck, and they are convinced that we are close enough.

Since most people purchase waterfront properties for reasonably long-term enjoyment, buyers in this category are assuming a little bit of risk while increasing their "utils of satisfaction." They don't need immediate gratification from all ends; instead they look to a steadily increasing level of enjoyment - both in new experiences with family and friends...and most likely in real estate value in the not too distant future.

To make this even more exciting for waterfront and recreational buyers, prices and availability for lake properties and large parcels of raw land are pretty impressive. In the two decades I've been in this business, I don't think I've seen such a wide selection of good vacation properties for sale. Not only are values low compared to construction costs, but there are plenty of choice properties that you would never have seen hit the open market in past years.

So try not to get too caught up in all the bad news. If the Dow keeps going down 400 points each day, we only have about 20 of them to go anyway. You probably won't even be able to close before then!

And if it doesn't keeping dropping, you'll have plenty of time to "live in the moment" at your new lake home.

Dan

Shhh! Did You Hear That?

2008-10-27T22:24:00.005-05:00

As I was driving somewhere today, I heard a voice come out of the radio about housing sales being up about 2% in September. Now they really didn't say if they were up from August, or up from September last year, but at least they were supposedly up from something!

While I continued to cruise along thinking about how great this was, and imagining SOLD riders springing up on For Sale signs faster than buyers could gas up their cars, I switched radio stations and heard another voice mentioning that home values are at the same level that they were in September of 2004. And someone told me last week that they heard this whole housing thing was supposed to pick up in the 3rd quarter of 2023.

In just five or ten minutes of watching CNBC or FNN, you will get a similar array of stupidity from an endless parade of experts regarding the stock market and the financial mess. The political process is worse yet, with hour long debates from a cast of characters about "Joe the Plumber!"

Jon Stewart, of The Daily Show, may have done the best job on this nonsense with his bit piece this evening on political analysts called: "Who the "BLEEP" is This Guy?"

It seems to me that the rate of consumer indecision correlates directly to the number of analysts spewing out garbage at any given point in time. In fact, I may attempt to prove that in a theorem, since the real estate market is still a bit slow from what I've seen. Although, then I suppose I would have to think up a good name for it, because no one wants to go through the trouble of creating a time consuming theorem without giving it a catchy name!

Look at the Pythagorean Theorem. Now that's one catchy name for a theorem! Athough, it didn't hurt that he already had kind of a fun name as Pythagoras. Parents just seemed to be a lot more creative with names back then.

And wouldn't you know it, there's already an Anderson's Theorem. I suppose that if this real estate market picks up any more I might just have to name it Dan's Theorem to save some time. I don't think there's one of those yet.

Maybe someday analysts will get paid based on merit and how accurate they are with their prognostications, and maybe then we will be able to believe them. But until that time we will have to make political decisions, investment decisions, and real estate decisions based on incessant babble from talking heads...or on our own gut feelings.

Oh...gotta go. ABC News just called and they're having a round-table discussion tomorrow morning that includes all the people with eight letters in their last name, and how that relates to your lifetime earning capacity. Hopefully, I can get a few words in because I have some pretty strong opinions on this subject!

Here's A Thought

2008-10-10T13:52:00.016-05:00

Well, I really wanted to get off this stock market stuff this week, but it seems to be taking center stage in our lives. Every day they tell us we lost another Trillion Dollars or so...but I'm really not sure where it went!

Maybe we are just dealing with "funny money" here. Not that it's funny how everyone is losing their retirement accounts and other supposedly safe investments, but how did we really get here? I imagine that a good part of it stems from the idea that we should be able to make a buck from someone else's actions - but it just doesn't seem to work that way.

What I'm talking about is this...

When I built my real estate business, or when the guy down the street started his hardware store, we each had to put a lot of money, time and hard work into making a profit. There were no guarantees other than looking at similar businesses that seemed to be making money, and trying to run our businesses as well - or better - than they were running theirs.

If we did have some extra money at the end of the month, we generally put it back into our business in the form or advertising, capital improvements, or other investments that we thought would help us grow - and sometimes we needed to borrow money to accomplish these same things - but if we were to succeed or fail, it would be our doing. We firmly believed that no one could make us more money that we could make ourselves!

Somewhere along the line things got a little bit blurred. Instead of people wanting to start businesses and build them from scratch - mutual funds, stocks and all kinds of fancy investment vehicles began offering returns that were out of sight. What sense did it make to work 20 hour days to create a successful company when you could just invest in one (or several through a spectacular fund) that paid back 50%, or more, on returns last year? Why not let someone else do all the work?

That is what a lot of people did. And many of the whiz-kids who were handling once-safe retirement accounts decided to do that too!

Hedge fund managers and others in high finance made tens of millions, if not billions, managing all this easy money. But everyone kind of forgot what the money was for.

The reason the money was even there in the first place was to invest in little companies (like yours and mine) that grew to be bigger companies over time because of our hard work. We may have brought in an investor or two during our early years who truly believed in our vision and wanted to be a part of our growth. But as we got bigger, most investors didn't even know what our vision was anymore...however, they were sure that the money manager they put their $50,000 nest egg with understood it completely.

And, of course, now that we worked and worked to get our little businesses to a level that might sustain our kids' college educations and our retirement, our little businesses are having a hard time making money because no one has anymore to spend. All the people who invested in the big companies - hoping to create their own nest eggs for college and retirement - have an egg or two missing. And the nest, itself, is getting a bit tattered.

It might not have been a bad idea for the government to hand out $100,000 loans last week to the little guys and gals who would build their own businesses from scratch, instead of throwing $700 Billion into the "abyss" like they did. That would have been enough to get about 7 million motivated people up and running...and in control of their own destiny!

All's Fine Now!

2008-10-04T10:08:00.005-05:00

Well, now that the bailout bill has passed, we should be heading full steam ahead. Although, I think I noticed a slight blip in that based on the Dow yesterday.

Back when I was doing a lot of stock trading in the late 90s, I remember how common it was to see the market drop instead of going up on good news. Not that the bailout is all "good news" for everyone, but many of those in high finance have been touting it as such. The reality is that, because it has been talked about for so long, it has already been factored into the market - and the stock market has become more of a knee jerk index based on immediately released news.

However, my specialty is real estate instead of stocks, so I'll try to stick with that from now on. The funny thing here is that our sales have seemed to be stronger during the past month than they have been for most of the year. Either people are just getting sick and tired of letting the bad economic news kick them around...or maybe we are in the beginning of a recovery.

Let's let the pundits battle back and forth on the news networks, while we quietly start getting the real estate market moving again without them noticing.

Dan

So, What's Next?

2008-09-26T11:51:00.016-05:00

As we all wait for the big "bailout" decision on whether the markets are going to come tumbling down - or if life is going to be filled with nothing but sunny days ahead (I suppose that won't help global warming) - people keep asking me, "What is this going to mean for the real estate business?" My answer is generally something like: "I don't know." But secretly I find myself thinking more like: "I don't really care!"

It's not that I don't care about the economy being strong and people being able to afford houses and other necessities; I'm in that same bunch of people, and my income is certainly dependent on home buyers being able to get loans. But it seems that every time the government tries to fix something, they make something else worse.

Now, as I've said before, I'm not an economist. I really don't know how all this works. But I've been in the real estate business for a long time, and from what I remember the economy seemed a little more stable when interest rates were a few points higher. It might not have been quite as easy for home buyers or for businesses to borrow money, but they also may have been a little more cautious when they did do it.

As the Fed has gotten more involved in easing the availability of credit to give the impression of strong economic growth, we have seen a run-up in real estate values like never before. I have been of the opinion for quite a few years that there was no way to sustain this "false real estate market" that was built on "feel good" interest rates. So, I believe that we got what we paid for...or, perhaps, what we didn't pay for!

Sellers also bought into this feel good atmosphere by thinking that these good times were never going to end. Those who used to be happy with 5% appreciation on their homes each year later decided that even 20% yearly appreciation wasn't enough, because money was cheap and everyone wanted more real estate. Home prices got out of hand, and the ocean of buyers turned into a wading pool.

This is the part of a Free Market Economy that is still totally free. Buyers are free to buy; sellers are free to sell; and real estate prices are free to fluctuate based on supply and demand - without government interference. And that is what they have done...coming down to levels we have not seen in several years.

So let's let the chips fall where they may, and maybe we can all get back to normal again. Whatever that may be!

I'm guessing there will be some kind of bailout plan that gets approved fairly soon, and some of those big exec's will only get 10 or 20 million dollars instead of 50 million for their severance packages. And with savings like that, it should only take about 20 or 30 thousand of those kind of salary reductions to make up the 700 billion dollars we need. Or, they could just get 70 million of us little guys to throw in $10,000 each.

I guess they should have called me in on that big meeting at the White House yesterday.

Dan

WOW...What About the Dow!

2008-09-18T19:16:00.005-05:00

In real estate, the stock market can have a huge effect on peoples' motivations. I remember being out with a buyer after one of those big drops in the late 1990s. The lake home we were looking at was around $400,000, and he told me he had "just lost one of those in the last few weeks."

Of course he meant he had lost that much money, but it was obvious that a cabin of that price would not have gone to zero value like the stock did. So he was looking for better places to park his money, and he figured lake property was probably the best place at the time.

Over the past few days, we have had several calls come into our agents from potential buyers saying the same types of things: "I'm getting slammed in the stock market, so I want something tangible that I can hold onto for a long term investment." And as far as real estate goes, waterfront property and acreage is probably about as good as it gets for an investment.

I know there have been plenty of people who have been hurt financially throughout these past couple of years (many Realtors included), not only with the downturn in real estate values, but also with the high cost of goods that has eaten into their discretionary income. Many of these folks are not able to even think about buying anything like real estate right now. However, there are still a lot of people holding onto a pile of cash, and those might be the ones who will get this market moving again. With prices so low, they are probably thinking that these types of properties might be one of the safest places to be, even if the economy gets worse.

Whether the Dow goes up 400 points a day, or down 500 points, there is a lot of uneasiness in the economy right now. So unless you're a day trader, maybe real estate and especially a lake cabin - isn't a bad idea for the long term. And it's a lot prettier to look at than a stock certificate!

This Year's Market

2008-09-17T14:36:00.000-05:00

Last night I had a request for information on how the lakeshore market turned out this year. Of course, it isn't over yet, but generally we would start seeing a reduction in sales about now.

The odd thing this year is that we've had an increase in sales all of a sudden. I remember a market like this in 2001, where not much sold throughout the summer, only to have a real influx of sales in the fall. I don't really remember what waterfront real estate prices were like overall that year (they certainly were cheaper than what they are now), but what probably happened is similar to what has gone on this year.

In a normal market, the buyers start to emerge in early spring and get excited about the thought of having a new lake place. Time is of the essence, because summer is short and most people aren't very good about delayed gratification. So they buy fairly quickly, understanding that more properties might be coming on the market - but the loss of not having it to use is greater than the gain of maybe finding the perfect one sometime.

It's no secret that the last couple of years has been tough on the real estate industry overall. The uneasy feeling in the economy, combined with the difficulty in getting loans, the high price of gas, and the run-up of real estate prices a few years ago, made a lot of people step back and think a bit before jumping into any more things they don't absolutely need.

I'm going to try harder to answer this question in another month or so, but what I kind of see happening now is that we have bottomed out (for some time now), and we are just waiting for a little bounce. That bounce may come from investors who understand that prices for lake homes and cabins are very low in relation to other goods, or it may come from the ever-expanding base of Baby Boomers who decide it's time to make a move.

Either way, most agents around the country tell me that their sales have picked up over the last month - and we are seeing that too.

A New Blog Format

2008-09-16T13:39:00.001-05:00

After quite a few months of being the headliner on this blog, I thought it was only fair to bring Sandy in on it. She may not be as interested in writing the articles (although you can probably tell I haven't been that interested over the summer either), but she certainly knows the business and might decide to throw a few important thoughts your way.

Anyway, it is now "our" blog, so please let us know if you have any items you want us to cover. I personally think it is easier to keep the entries a bit shorter so that we can keep current information coming at you more often. At least we'll do our best!

Thanks for visiting,

Dan

Summer Fun...Then and Now

2008-08-18T12:09:00.005-05:00

Having a lake cabin can be an enjoyable experience for a multitude of reasons. It is a great place to unwind and forget about the daily grind, and it can bring family and friends together in ways that are difficult to do off the water. And although many cabins offer plenty of recreational activities throughout the year, summers tend be foremost on buyers' minds as they set off on their cabin searches.

Those of us who grew up around water most likely have fond memories of lazy hot summer days by the lake. And visits to Grandma and Grandpa's old lake cabin with the expansive sand beach are just about impossible to erase from your memory. Besides...who would want to?

These days, summers at the lake look a bit different than they did 30, 40 or 50 years ago. Instead of the old maroon 35 horsepower Johnson motor, water skiers are being towed by outboards as big as Volkswagens - or inboards with more power than locomotives. Fishermen, who could be seen spending quiet evenings in their tiny fishing boats in search of a walleye or two, are now found with much larger rigs filled with advanced equipment to make the trip quicker and much more efficient. And the real serious ones can be seen zipping across the water at 70-80 miles per hour in shimmering bass boats on their way to the nearest gas pump!

There are still a few of the old timers around who are holding onto the past with their 12 or 14 foot Lunds. But, it can sometimes be a daunting challenge dodging 3-passenger jet skis sending text messages while jumping wakes, 20-passenger pontoon boats pulling wake boarders, and a lake full of fair weather fishermen ready to swoop down on your favorite fishing hole as soon as they see you pull one in. Consequently, most of them have given in to technology, speed, and a bit safer environment...to help fight the battle.

Back at the shore things look a bit different, too. Grandma and Grandpa's cabin with that great sand beach is now a townhouse development. Now, twenty families are living their summer dreams and making their own memories where you spent long summer days exploring and searching for lost treasures. Back then you might not hear another voice for hours - and nobody really worried about you too much because you always seemed to make it back to the cabin...sooner or later.

Fortunately, Minnesota and Wisconsin have an abudance of lakes that can provide enjoyment for lake lovers on each end of the spectrum. Smaller lakes with sparkling sand beaches can still be found across both states, and many of them have very little boating traffic to erode the serenity. Quite a few of these lakes tend to have larger parcels that give a bit more privacy than their larger counterparts.

On the larger lakes you might find a bit more traffic than you would in years past, and many of the large properties have dissapeared in favor of denser development. But Minnesota and Wisconsin residents love their lakes, it is not surprising that the demand has been changing the waterfront landscape for many years now.

It seems like a lot of potential lakeshore buyers try to replicate those memories from their youth as they begin their quest for the perfect lake property. But times have changed along the water, so make the most of what is out there to experience today...and let the past go! I think you'll find that there is still plenty to enjoy when you have a lake place.

Fire and Water

2008-07-07T16:23:00.003-05:00

When it comes to lake living, I don't believe there is anything more relaxing than an evening campfire at the water's edge. I've had two lake homes with lakeside fire pits, and it is the perfect way to wind down with family and friends after a tough day on the lake. And if you have a light breeze most of the bugs seem to disappear with the lapping water, unlike those permanent mosquitoes that congregate deeper into the yard.

You can create a fire pit from plenty of materials. They sell cute fire rings with cutouts of numerous animals and wildlife scenes for hundreds of dollars. But sawing off the end of an old culvert or gathering enough rocks to complete a 3 to 5 foot circle is free!

When you are designing your lakefront campfire area, make sure not to make the circumference too large. Even though it might be easier to throw larger uncut trees and branches into these monster pits, large fire rings can make it difficult to include everyone in the conversation that seems to naturally take place around the mesmerizing flames. If you need to burn a large amount of brush and other materials once in awhile, that is sometimes better accomplished in an open area on the property where you don't have to worry about tall flames catching trees or dry grass on fire.

Also consider the area around your waterfront fire pit to make sure you are not too close to overhanging branches, and that you have a non-flammable base around the ring to keep errant coals from igniting docks, decks, trees and other items that are better looking unburned. It is a good idea to have chairs or benches made from materials that do not conduct much heat, and if possible have plenty of room to move them closer or further from the flames depending on the amount of heat being generated.

Finally, have a stack of dry wood on hand so that you can get the fire going on short notice without a lot of smoke. At the lake the end of the day happens quickly, and you might want to transition from swimming, skiing or fishing to the warmth of the campfire at dusk to relive the day's activities.

But make sure you don't drink to much as you discuss the vast array of important world topics. Otherwise, you might have a hard time remembering all the great conversation!

Selling Your Lake Lot

2008-06-24T00:31:00.002-05:00

Now that the mosquitoes are out in full swing, it is a good time to recognize some of the pitfalls of offering bare property for sale. I was at a couple of lake lots last week...but I wasn't there for long! Even with long clothes on, I was full of bug bites in just a few minutes.

Lots, in general, tend to be less cared for than the land is around a home or cabin that is used on a regular basis. It is much easier to pull the mower out of the shed or garage and knock down most of the tall grass once in awhile when it is already at the property. With bare lots it is an extra hassle to bring the mower or trimmer out to the land to take care of that, and who really wants to go out there anyway?

However, if you are trying to sell your lake lot, you might want to look at it from the buyer's perspective. Every negative aspect they encounter is another reason to not look any further. And just like in house shopping, most buyers have very little imagination when it comes to seeing beyond what is there.

I see many of the same problems when it comes to marketing lake lots. Here are some that I would suggest trying to overcome to make your lot as attractive as possible:

1. Clean Out The Brush - Many lake lots are too grown over and it is difficult for buyers to walk through the land, let alone see what is there. Make it easy for buyers to get from the driveway to the lake - and to be able to walk around down by the water.
2. Get Rid of Dead Trees - Dead trees all over a property are a clear-cut negative that a buyer sees as not only ugly, but also expensive if they have to do the removal. It is best to get them out of there before you offer the property for sale.
3. Get Rid of Downfall - I've been to lots where there are so many trees fallen down it is nearly impossible to get through the land. This is not supposed to be a hunting excursion for these potential buyers; they are looking for a place to build a home. Help them out by not giving them a heart attack climbing over walls of downed trees. Remember that many of these potential buyers tend to be older, and this is not a good way to get them interested in your property.
4. Create Views of the Water - If they can't see the water easily, they probably won't be interested. Most counties and DNR regulations allow you to thin trees within a certain distance back from the water. Take advantage of that to make your property more appealing.
5. Don't Forget the Dock! - One of the most important things you can do - that is hardly ever done - is to place some sort of dock on the property to get buyers out over the water. It doesn't have to be fancy, but by picking up a dock section for a few hundred dollars you might make yourself several thousand with a successful sale. Lake properties are high priced because they are on the lake...don't forget to use as much of that aspect as possible in your presentation.
6. Finally...De-bug All You Can! - Mowing, trimming, spraying, and whatever else you can do to keep the bugs down will make the buyer's time at your property much more pleasant. If they have to run away before they get carried away, they probably won't be returning anytime soon. Your real estate agent's job is to get them to the property; your job is to get them to stay there!

The Best Place To Build A Cabin...

2008-06-10T15:01:00.000-05:00

I am often asked where the most affordable lakeshore properties are in Minnesota - and which are the best lakes. That really depends on what you are looking for in a lake, and the answer would be very subjective. But this article from Minnesota Monthly uses an array of criteria - along with affordability - when they talk about Rainy Lake being the best place to build a cabin.

Minnesota has one of the largest variations of lakes in the United States. With nearly 15,000 of them, you can find waterfront real estate on everything from large puddles to vast water bodies that feel like small oceans. Lake of the Woods, Red Lake and Mille Lacs Lake all share these expansive panoramas, and they can also become quite unfriendly in fast approaching storms.

Rainy Lake - also one of the state's giants - has a bit of a different feel that provides unique rock formations and quiet little enclaves around most every bend. You often feel as if you were the first human to discover a hidden channel cut through the stone, or a concealed beach miles from civilization. It is an interesting mixture of open waters and winding inside channels that can give new perspectives to your journey each time you travel them. Here is a little tour of that waterway:

There is no doubt that Rainy Lake is one of the most beautiful water areas anywhere. With nearly 225,000 acres, 1,600 islands, and about 1,000 miles of shoreline, you can literally boat for days on various branches of this scenery-filled expanse. Just remember to get your Remote Area Border Crossing Permit, or clear in at Canadian Customs, before you venture into foreign waters.

If you are more comfortable staying on the American side of the lake, you will still have plenty of water to run on as you pass through Voyageurs National Park. Whether you are looking for a private fishing hole, a sand beach for an afternoon picnic, or a hike into a remote interior lake, it is all there to be had...without the crowds. In fact, wherever you decide to land your boat - mainland or island - it will be all yours!

But if Rainy is too limiting for you, just pull into Kettle Falls Hotel - a water-access only historic respite at the east end of Rainy Lake - and they will trailer your boat a few blocks into Namakan Lake for just $20. From there you can visit the many resorts on Lake Kabetogama or venture further east through mesmerizing Sandpoint Lake and into the remote water-based community of Crane Lake.

From Woody's Rainy Lake Resort and Pub on the west end of Rainy Lake in Ranier, you would have traveled about 70 miles or so by boat. If you haven't run out of gas money yet, you can keep going further into Lac La Croix where you can enter the Boundary Waters Canoe Area and Quetico Park to do some paddling - which will give you a few more miles to the gallon. Otherwise, just enjoy the evening at one of the lodging facilities in Crane Lake.

I hope you enjoyed this brief tour of Rainy Lake and the other Boundary Lakes, which will hopefully give you some insight into why it is such a great place to have a cabin. If you are only thinking about price, it might not be the absolute cheapest lake to buy property on; there are many other smaller lakes in Northern Minnesota that offer lower priced lots in the $100,000-$150,000 range.

But, for Rainy Lake's relatively low prices and it's unending beauty, it might just give you a whole lot more recreational satisfaction for your money than almost anywhere else. You'll never know until you check it out...and once you do you just might not leave!

Well, Here it Goes...Finally!

2008-05-30T23:35:00.004-05:00

As the broker for Lakehomes.com Realty, I am obligated, by law, to review all the purchase agreements that come in to the office from my agents. I can tell you that I've been pretty busy over the last week. And it isn't just one or two agents - or one or two areas - it is starting to get busy across most of the state.

I've been saying for awhile now that there will be a spring market sooner or later, and I'm sure most of you were thinking I was crying "wolf!" I can't tell you how long it will last, but I've noticed some major changes this past week in how the media is now perceiving the market.

Just a month ago, nearly every news report was geared toward the sinking real estate market and all the bad things that go along with it. But the most current news stories are more focused on what good deals are out there, and how people that were priced out of the market just a couple years ago can now start buying again. Who flipped that switch?

With all this good news, I suppose that we will now go back to multiple offers on properties, with sale prices higher that what they were listed for. Well, that might be an exaggeration, but history has plenty of proof that we humans tend to act quite similar to lemmings when it comes down to good news...or bad!

I don't want to dwell on how the 2008 real estate market may or may not turn out. And I certainly won't pretend to be an expert in real estate markets across the United States - or even those other than the ones relating to waterfront properties. But based on how the phone has been ringing lately, those buyers who are in search of lakeshore homes and cabins in Minnesota and Wisconsin are definitely in the hunt.

To confirm that I wasn't just imagining the increased interest in waterfront real estate, I checked our page views on our national websites at LakehomesUSA.com, RiverhomesUSA.com and OceanhomesUSA.com. On those sites we are pushing nearly 2,000,000 page views each month, which is about double of what we were last year. Lakehomes.com, which is focused mainly on Minnesota and Western Wisconsin, has also hit record levels with nearly 1,000 visitors on the site each day viewing multiple listing pages. The waterfront buyers haven't disappeared by any means, it's just that most of them have been waiting for the right time to jump back in.

I've kind of tired from writing about the market in general, which is why I haven't been posting as often as I was. But now that sales are starting to finally take place, I will quit boring you with my day to day thoughts of how this funky real estate market may play out. No one knows - including me - so let's just sit back and watch.

While we are waiting for the results, I'll try to think up some more interesting things to entertain you with.

An Update On Lakeshore Sales

2008-05-20T22:37:00.005-05:00

Generally, by now the spring market is starting to heat up for the year. However, this year we are having a problem with "heating up" in more ways than one!

I wrote an article a couple months ago that talked about how the weather was not always a big factor in the spring market. It basically said that when people sensed that spring was coming (sometime around the beginning of March), then they changed their habits and starting thinking about new purchases like lake cabins - or even moving to new areas. But in talking - quite often - with other seasoned agents around the state, this may be the oddest year any of us can remember.

Over the years I have noticed that the spring lakeshore real estate market can start as early as February, but might begin as late as mid-April. These are typically the buyers that have decided the time is right to make the move to either a lake home or a waterfront cabin. They see themselves moving in shortly after ice-out, and getting full use of their lake place for the lengthy Minnesota summer.

Well, I just looked at the calendar, and I believe it is May 20th. If I started to check off the months till summer ends, I could probably add them all up on one hand...and have two or three fingers left over for next year's market. It doesn't look real promising from a seller's standpoint. And in case that isn't a big enough downer, here is another taste of reality....

I thought it might be interesting to look at residential waterfront sales during a certain spring period for the past several years. Since the Twin Cities Multiple Listing Service (Northstar) is by far the largest in the state, and because it has data from nearly every county throughout Minnesota and Western Wisconsin, we should be able to get a reasonable comparison of what the waterfront market has been like year to year since 2001.

I decided to use the time frame from April 1st of each year through today's date (May 20th), since that should be right in the midst of the spring market overall. I used only residential sales; no bare lots or commercial properties. So here it goes:

2001 - 288 units
2002 - 266 units
2003 - 335 units
2004 - 414 units
2005 - 489 units (looks good so far!)
2006 - 334 units (whoops)
2007 - 278 units (double whoops)
2008 - 245 units

One more thing you should know about this is that Northstar MLS has grown quite extensively throughout most regions of Minnesota and Western Wisconsin over the last few years, causing greater numbers of unit sales to be reported each year based on listing numbers alone. That said, these numbers show even a larger drop in units if compared more accurately to the earlier years of this data.

I could go further and look at average sale prices and market times, but this should be a big enough dose of reality for tonight. The market is simply not as good as it was a few years ago. However, there is a silver lining inside this cloud that all sellers should be aware of.

Throughout the years, even in good markets, about half the homes listed do not sell. They go off the market after being listed for 3-12 months or more, only to get picked up by another brokerage...and perhaps others after that. Whether it is because of poor location, condition, marketing, or any other excuse that you might try to pin on it, it is always because of a price that is too high for that particular piece of real estate. Even if the structure was in terrible shape, the land would still be worth a certain amount that would sell in any market if priced correctly. Today's real estate market is no different.

Our company has had several waterfront sales over the last few days. There are very good and qualified buyers in the market right now who will pay reasonable prices for good lakefront properties. But, there is still an unbelievable amount of properties for sale in poor condition listed at unreal prices. If you are a serious seller, all you have to do is make sure yours stands out from the rest of the pack - both in condition and price!

Ask your agent to take you out to half a dozen listings that are similar to yours. Be as objective as you can, and try to look at your property as if you were the buyer. Which of the homes or cabins would you choose? Is yours truly the best of the bunch, at the best price?

Don't be fooled by believing that prices and sales numbers are going to immediately return to their levels from a few years ago. If you can afford to take a little bigger hit that you originally anticipated on the selling end, you will most likely make it up on your purchase if you are buying something else.

But buyers should also realize that there may never be another time where prices for homes and cabins are so inexpensive, in relation to to actual land values and building costs. Some of those smart buyers are moving back into the waterfront market, and are picking up some great properties at prices they couldn't touch a couple years ago. I personally believe that these people are buying very close to the bottom of the market, and that lakeshore values will edge up slightly - depending on the amount of unsold inventory that remains available.

And remember that the lakeshore market up north is a fairly limited one, so don't wait until the end of July to get your lake home or cabin to the top of the buyers' lists! That's normally about the time Minnesotans are more interested in getting their snowmobiles ready to go again.

Part 6 of Series..."What to Think About When Buying Lakeshore"

2008-05-11T10:23:00.004-05:00

Part 6: Make Room for Mother...and Father

I thought that Mothers Day would be a fitting time to talk about a few of the concerns I've heard over the years, relating to space for the extra guests. Kids are generally quite easy; they can throw up a tent or sleep on the floor. But older guests many times need something a bit more comfortable than that.

When people start looking for lake cabins, many of them tend to create a picture in their minds about large gatherings of friends and family all enjoying the recreational opportunities available on and off the water. Oftentimes this does happen (unless of course you don't invite them), so if this is part of your plan you should consider things like sleeping arrangements, parking, access to the water, and even space needed to hide out on bad weather days. Of course you don't want to go overboard on these things just because you might have a party now and then, but I'll give you a few things to at least think about before you buy.

Bedroom space can be kind of a tough one. A lot of lake cabin buyers don't want to have a real big place because they already have one of those to take care of. They like the idea of having a more rustic getaway - the kind of place that feels like a cabin. That is probably the one comment I hear more than any other one.

Cabins, of course, come in all sizes. But unless they are decked out in a lot of interior wood and north woods furnishings - along with an open design that gives a more lodge-like ambiance - the larger ones can start to feel a lot more like lake homes than lake cabins. A cozy cabin with two or three bedrooms seems to fit a lot more of the buyers than the four or five-bedroom models.

Obviously, this lack of sleeping space can become an issue if you regularly have extra company, and when the parents come to visit they might like to have a little privacy. You can always do some temporary conversions like a sleeping porch, bunkhouse, or even closing off another area to create separation if you have room. Another good option is to have an extra camper or motorhome on the property to give you some added sleeping space for a lot less money than an addition. Just make sure you have a level area to park it in, otherwise you may see your guests rolling down the hill.

Steep lots can also be a problem for older guests...and for adults trying to keep an eye on younger ones. Treetop views offer great panoramas of the water below, but getting down to the beach - and back up again - can offer some challenges to the non-athletes. On some of the higher lots with more gradual slopes, there might be a path for a golf cart or four-wheeler that can make the trip up and down quite a bit more enjoyable. And it may make the difference between some of your guests being able to make it to the boat - or not - if you decide to purchase a lake place on one of these more elevated properties.

Parking is something that presents a bigger problem on some lake properties, just by the nature of how roads around lakes have been placed. Most everyone has taken a scenic drive along the lakeshore and seen how cabins are sometimes packed in against the road. Quite often there is not a lot of depth to these lots, so the only parking available off the road is in the driveway - which might only hold a couple of cars.

If the road is wide enough with ample shoulders, it might not be too big of a problem. But many roads around lakes can have a steady stream of traffic during the busier months, and because they tend to be quite narrow (often with no shoulders at all), it can create quite a problem when friends need a place to park.

Lake cabins can be a great place for solitude and to get away from the daily rush of life, but they can also bring a lot of enjoyment to you and your extended family and friends. Just make sure you will have enough space to accommodate all age groups that you envision coming out to share these good times with you.

And remember that even in Minnesota and Wisconsin, we usually get a few days that being outside can be a little miserable. Having twelve people in a two-room cabin might get a bit tight during these times...so try to think ahead.

Rock Bottom May Have Already Hit...In Some Markets

2008-05-05T17:24:00.005-05:00

As some markets across Minnesota seem to be languishing in excessive inventories of unsold homes, along with rampant low ball offers, I am starting to get a few reports from around the state that vary from that a bit. I have a few ideas on why this might be happening.

While I was at a wedding in International Falls on Saturday, the county assessor mentioned to me that the recent sales coming through his office prove that prices are holding steady at last year's levels. Holding steady!...Hasn't the media been telling us that everything is in a downward spiral? And isn't International Falls only mentioned sporadically as one of the top relocation markets in the nation? Why would their prices be holding steady?

If we all think back to about five years ago, it seemed like real estate prices in some parts of Minnesota - and in many parts of the country - were increasing in value at an unbelievable pace. Some areas of the Twin Cities had over 20% appreciation from year to year, even higher than the adjustment in most peoples' wages. There were many supposed reasons for this rapid escalation, from the high cost of building materials to a huge shortage of labor. In fact, there were reports that gypsum may become extinct, so if you were going to have sheet rock walls, "you better get them now!"

Of course, in retrospect, all of this was silly. Just as silly as the thought of a corn field development house, in the outer rings of the Twin Cities, increasing at 21.3% in one year. I guess people thought that corn fields would become extinct, too (in fact they may have if developers would have been able to keep up that pace much longer).

But the Twin Cities wasn't the only area that prices had superb appreciation over the last decade. Waterfront properties in some of the more popular vacation areas of Minnesota and Wisconsin had their lakeshore values (just the land costs alone) increase to over $5,000 per front foot - or more - on the most sought after lakes, and not much lower on some of the secondary ones. However, there were a few markets around that didn't share as much in this free-for-all, and they might be the ones that are holding their own better than the rest.

Areas like Lake of the Woods, Rainy Lake, Grand Rapids, Park Rapids and Duluth, among others, have no shortage of spectacular recreational opportunities and beauty. However, due to certain factors, and possibly their increased distance from the Twin Cities, the prices have not escalated in those lake areas nearly as much as some others. In fact, you may have to try real hard to even spend $2,000 per front foot on some of the best lakes in those areas, even for some of the most private and attractive lots around. And many times you can throw in a pretty nice lake home or cabin for another 20-30%. Try building for $20 a square foot these days (plus a free septic, well, driveway, landscaping and garage).

There is no doubt in my mind that areas like Brainerd, Lake Vermilion and Hayward will be popular markets for lakefront real estate far into the future. They have vast amounts of water, great fishing, plenty of interesting ways to pass the time, and good proximity to Minneapolis and St. Paul. That is what caused them to become attractive vacation home markets in the first place...and what gave them their quick appreciation over other lake areas.

Only time - and some warmer weather - will tell if certain markets around Minnesota still have a little cleaning out to do. But from what I am seeing, rock bottom may have already hit in others. If that has truly happened, I would wager that the rest of them aren't too far behind!

The Changing Seasons

2008-04-27T10:24:00.004-05:00

Most of us who live in Minnesota have always been eager to tell others how we enjoy the changing seasons. Even after a relaxing trip down south to soak up all that sunshine, our conversations seem to point toward how difficult it would be to not have the variety of temperatures and recreational opportunities throughout year. But this year the seasons are changing a little too often for me - and I'm pretty sure I'm not the only one who feels this way.

In our household, I've boxed up the winter clothes twice now and then pulled them back out again. It's not that you need heavy parkas and long underwear, but some boots and mittens are kind of a necessity with a foot of snow showing up each week...along with temperatures back down in the teens. In addition, we brought out the sandals and shorts so we could get a chance to put them on during our spring days that we also seem to get every week.

Today I'm up at Rainy Lake, and it looks pretty much the same as it does around Christmas. The trees are covered in snow and the ice on the lake is still a few feet thick. There is a little bit of open water in areas with the heavier current, but it might be a challenge to get rid of the rest of it by opening of fishing season on May 10th.

Most of the birds seem a little confused up here, not really knowing where to find food or hang out. There were several of them flying around inside Menards, probably because it was a little warmer in there and they had a pallet of bird seed ripe for the picking. I saw a group of robins using a small toy shovel to try to get down a little closer to the worms, only to find out they also needed a toy pick-axe to break through the frozen ground.

I think many of us have the same sense of confusion, not really having a good feel of what month it is or what kinds of activities we should be taking on. Generally, we'd be out raking our yards and maybe doing a little painting or other odd jobs around the house. And a lot of people would be out looking at lake cabins and waterfront homes during the spring market, so that they can move into them before the summer is over.

This definitely has been one of the longest winters I can remember, and some days it makes you wonder if it ever will end. I'm guessing it probably will, and we will have hot summer days sooner or later - just like in years past. Those of us who have lake places will still get plenty of enjoyment from our days around the water, and by fall we'll be talking about how much we enjoy the changing seasons.

So even though this weather seems to be dragging on forever, pull out a few summer photos to help you remember some of the good times that warm weather brings. And if you've been thinking about buying a place on the lake, you can still take advantage of some great values that are currently out there. You may be very glad you did!

What If You Were The Only Buyer In The Market?

2008-04-19T23:20:00.010-05:00

What a silly question! How could that possibly happen? Is Ollie "The Dog" writing this article, too?

I've been out showing lake cabins all day today around Grand Rapids, Longville, Outing...and tomorrow I'm showing different buyers in Annandale. I know that's a pretty wide ranging area (about 200 miles from one end to the other), but I've been doing that for years. By personally seeing and understanding markets across Minnesota and Western Wisconsin, I can better help waterfront buyers (and assist my agents in helping their buyers) by giving them a perspective of the entire lakeshore market as a whole. And right now the whole market is pretty much there for the taking!

Now, I certainly don't mean that every seller is in dire straits, nor would I ever suggest that every lake property owner will even reduce their price by as much as a dollar, but I would say that prices - in general - have come back to a level that we probably won't see again for a long time. If ever.

Some properties are priced very well - according to the current market - and they will sell for prices at or close to what those sellers are asking. Others are priced too high, and may come down quite a bit to create a transaction. Some won't sell at all, and will get listed with two or three more brokers before they ever get an offer. It's really no different than it ever has been.

It's not easy to take the plunge on an investment as expensive as a lake property when the media hammers on the housing market each day. Subliminally, we are constantly receiving messages telling us to keep our wallets in our pocket because the sky is surely falling. The problem is, we just can't tell for sure when it's going to land!

If I were a potential lakeshore buyer listening to numerous news reporters each day, instead of just a Realtor who has specialized in waterfront real estate for over twenty years, I'd probably believe that the value of most real estate was going to at least zero. Why would anyone want to own anything like that? Penny stocks could be the real answer.

And what if gas goes to $10 per gallon? Who will ever go to the lake then?

One of my agents emailed me this article from Minnesota Public Radio today. It's an accurate depiction of what is going on in many areas across the country right now - and quite severely in Minnesota and Wisconsin.

I will tell you this. I do have - as many of my agents also have - very good buyers who realize that this might be a great time to purchase a lake home or cabin. Those of us who specialize in waterfront property understand the true market, and I believe our buyers will make some great purchases over the next few months because of the extraordinary hype that has gone on about the decreasing values.

By realizing that markets are cyclical, we shouldn't get too overly concerned about tomorrow's real estate news. I'm sure millions of people will see several "for sale" signs on the next "Good Morning America" broadcast, backing up the downward spiraling housing market. More agents will turn their licenses in to the state to avoid paying their ongoing dues so that they can go out and get a steady job driving truck or waiting tables. And many more buyers will put their money in 3% CDs just to have a safe investment.

But, if you take a step back and look at market trends, building costs, realistic values...and the unmeasurable family enjoyment of owning a place on the lake, you too might realize that there may never be a better time to make that purchase. However, if your only goal is to get a ridiculously low price on a property just because you might be able to do that in this market, you may not be real successful...on the good properties. However, there is always plenty of junk available out there that may warrant some hefty discounts!

Even if there were no other buyers but you out in there in the market today, there would obviously still be a limit on the minimum amount most sellers would take for their properties, just based on what they have into them and what they need to move on with the next phase of their lives. Most likey, you would do the same thing.

Obviously, you are never going to be the only buyer out there, but right now you can be one of a small number of them. There's a pretty good chance that the competition will get a little stronger quite soon!

Talk From The Dog

2008-04-15T21:27:00.009-05:00

I'm always looking for guest articles for this blog, but I was surprised when Ollie told me he would like to submit one. Surprisingly, he has a fairly strong command of the English language. And I think he makes some very valid points on what types of things might be important to the family pet.

Hello, I've never written an article for a blog before...in fact I don't think I've ever written an article at all. But, as a dog who has been around lake properties quite a bit, I have some suggestions for those of you who might be looking for a special place for you and your pet to hang out.

When I was just a little puppy, I used to go up to my grandparents' house in Northern Minnesota on vacation. They lived on a big lake with a big dock and huge pine trees, which gave me and my uncle Charlie the Dog lots of places to hang out. The world just seemed so BIG! I had so much energy back then, and I could just roam around all day.

As I got a little older (it seems like about 7 years older every year), I liked to hang out in the house more often, and Gramma's shag carpet came in handy to keep those old bones from getting too sore. But Gramma always loved dogs - and she believed they should be at least as comfortable as humans - so she put quilts on the floor for me and Uncle Charlie so that we would sleep better. Of course, she had pretty comfortable couches also, and about the time I hit my third birthday I started spending a little more time hanging out on them - mainly to keep my bones and muscles from getting too sore after a long day of chasing squirrels and sniffing animal droppings.

Oh, I love those great memories of Gramma and Grampa's lake home. By the way, they always had really good food - and lots of it. But I digress. I wanted to tell you some things I have seen - and heard - about what other dogs like to do at the lake.

I had several dog relatives that were also around water most of the time. I'll never forget some of the stories the humans would tell about those crazy dogs at night around the fireplace. Uncle Charlie and I didn't get real involved in the conversation, but we would nod once in awhile...and maybe wag our tails.

Probably the king dog of the family was old Grandoggy Chippy. He was around when my dad was a small boy and, apparently, he loved to sail off the dock to chase sticks. He would come running down that 100 foot dock at full speed and just keep going until his belly splatted on the water. Ouch! Now I don't mind retrieving a stick from the water now and then as long as I don't have to go over my waist to get it, but you certainly won't see me taking my life in my own paws like that.

Another real "lake dog" was Ringo. He was my older dog brother, but I never got a chance to meet him in person. He lived at my parents' lake house when the kids in my family were just little. Ringo was a "frogger," and would spend hours chasing frogs along the shoreline. He was also a heck of a fisherdog, and would try to grab the fish off my brother's line as he reeled them in. I guess one day he ended up with hooks in his lip twice, so my dad got a little upset with him and wouldn't let him fish anymore for awhile.

There are plenty of other stories of the ancestral dogs of the family...Granduncle Snowy, Great Grandauntie Ginger...and many others that I could go on about. They all loved being at the lake, wandering around in the woods, laying on the shag carpet, and eating great meals. Some, like Chippy, loved to play, while others just liked to wander around the neighborhood.

I guess us dogs all have our individual traits, just like humans do. Some humans enjoy fishing or boating, and others may just like to curl up with a good book. I certainly don't mind a good boat ride now and then to get the wind blowing through my nose, but if I only had a hard floor to lie on at the end of the day I'm not sure if my time at the lake would be as enjoyable. And from talking to other dogs over the years, they seem to like the same things I do...lots of woods to roam in, no busy roads to get run over by cars, a nice clean swimming area, and plenty of shade to hide out in on those scorching summer days.

Well, thanks for listening to my story. Gramma and Grampa still have real comfortable carpets and couches - and lots of food - although they don't live at the lake anymore. But my parents now have a lake cabin they bring me to, and its the same one Gramma and Grampa used to have as their house. It's great that Uncle Charlie still comes up there to visit me, along with other dogs, and we all still partake in dog stories from days gone by. And with my fifth birthday coming up soon, I'm not sure that life can get any better!

Ollie "The Dog"

Finding The Elusive Waterfront Buyer...And What It Costs!

2008-04-13T12:04:00.008-05:00

It's that time of year again when we will be seeing lots of for sale signs popping up all over the place. Many will be from traditional real estate companies, some will be from discount real estate companies, and still others will be For Sale By Owners. That sign - depending on the quality of it - may cost between $15 and $100 or more, but that's about the least expensive part of getting a home sold.

When considering the best, and most cost effective, method to sell your home, it may be a good idea to look at the most recent statistics from the annual survey conducted by the National Association of Realtors. Each year they compile data from thousands of responses, giving a comprehensive overview of what buyers and sellers are thinking. If you are in the decision making process on your upcoming real estate sale, it may be wise to understand the buyers' mentality as a whole.

So let's talk about the different options when it comes to selling your property, and let's focus on lakeshore real estate specifically, since that is probably why you are on our website in the first place. Lakeshore buyers typically come from a further distance (especially as you leave the metropolitan area), so casting a wide net for the ultimate exposure is very important in trying to attract the right one. I will revisit this at the end of the article.

You will notice that the above survey shows that only 12% of real estate transactions in 2007 were For Sale By Owner...and since 40% of those sales were closely held between family members or friends, the real number was 7%. There is not a good statistic to show how many sellers started out trying to sell the property themselves and then listed it with a real estate broker, but it's probably a fairly large number. These people most likely incurred costs in trying to create exposure for their home or cabin early on, even though they later decided to list it with an agent and pay a commission.

The article goes on to state that this 12% number for For Sale By Owners is at the lowest level since they began tracking it. In 1997, there were a record number of these sales (18%), probably due to a fairly strong real estate market and a more conventional form of advertising at the time. Besides, with many serious buyers now being represented by real estate agents, FSBOs many times end up paying a few percent of the sales price in the form of commission to those brokers to accomplish the sale.

So, in trying to sell your own lake home, you would want to consider how best to get the word out on your property. If you have a waterfront property in Brainerd or Grand Rapids, for example, there is probably over a 90% chance that your buyer will come from somewhere else. They could be from Minneapolis, or they could be from Chicago or Texas, but they are probably not looking in the local newspaper - and most likely not even the Minneapolis paper - to search for possibilities. Running ads in those places can be quite expensive, and sometimes fruitless. And if you try placing ads in the Chicago Tribune or the Denver Post hoping to get seen, be prepared to pay over $500 for a small one day ad. From what I have found, it's not a very effective marketing method!

The one thing I have noticed over the years is that For Sale By Owners tend to get more calls off of their ads than real estate agents typically do. However, that doesn't mean they get more qualified buyers. Like anything else, there are always plenty of vultures out there just looking for someone who isn't aware of the value in their property, and those people will call to find out how you react on the phone and to see if they might be able to pick up a bargain. The sad thing is...sometimes they do!

Your next option is a Discount Real Estate Company, or a minimum service company. A discount company will generally help you through the selling process, but charge you less if you sell the place yourself. You may or may not get much advertising with their services, and you may be able to choose different levels of service based on fees or commissions charged. Minimum Service Real Estate Companies are generally set up to place your property on the local Multiple Listing Service so that other real estate agents can show it and be paid a commission on a successful sale. However, it is up to you to do any advertising beyond that, and to handle the entire transaction yourself - or hire an attorney to take care of it for you. You are pretty much acting as the listing broker, so you now have their job. In 2007, about 18% of sellers used these two types of brokerages to sell their properties. However, in many waterfront markets around Minnesota and Wisconsin, these types of companies may not exist.

When you look at the possibility of using one of these lower priced companies, make sure you understand all the potential costs involved. Some so-called Discount Companies can cost as much, if not more, than Full Service Brokerages, depending on how the transaction takes place. In addition, you may incur some of your own advertising dollars in the process. A Minimum Service Company will cost you whatever you decide to offer out for compensation on the MLS, as an incentive to agents who bring you a qualified buyer...it could be 2%, 3%, 4%, 10%...or any number you choose. Plus, you will pay for any advertising you decide to do.

I know this article is getting quite long, but there is a lot to think about for a prospective lakeshore seller. The last thing I'll touch on is Full Service Real Estate Companies, which are the large majority of brokerages out there today.

The 2006 NAR Survey showed that 83% of sellers who used real estate companies chose the traditional full service model, as opposed to 81% in 2007, so that number has remained fairly strong even with all the other options these days. It's probably also due to the fact that most sellers understand the potential complexities and costs involved in marketing and selling a property. When you hire a Full Service Brokerage, it is their job to handle all the market analyses, advertising, signs, lockboxes, showing appointments, feedback calls, photos, websites, virtual tours, phone calls, paperwork...and most of the problems that arise! Pretty good peace of mind for most sellers.

Last - but not least - is the fact that with 84% of buyers using the Internet to search through available properties (that number is probably quite a bit higher for lake properties because of the distances and higher income levels involved), Full Service Brokerages are able to put their earnings back into expensive websites and a wide variety of Internet marketing techniques to get greater exposure for their listings. Anyone can run an ad in the local newspaper, but not everyone can achieve top search engine results that are needed in today's competitive real estate marketplace.

So when you start thinking about how to walk away with the most money in your pocket after the closing on your lake home or cabin, make sure you look at all the different aspects and costs involved in finding the right buyer. And take a look at a few Google searches that a buyer might use to find properties that fit their needs. Whether it's Minnesota Waterfront Real Estate, Northern Minnesota Lake Property, Minneapolis Lake Property, Duluth Waterfront Real Estate, Brainerd Lakefront, Western Wisconsin Lake Property, Alexandria Lake Property...and hundreds of other water-related searches around Minnesota and Wisconsin, you will probably find Lakehomes.com and our other waterfront websites among the top results. We've already spent the money to get there...so that you won't have to!

Nothing Like Spring!

2008-04-09T22:36:00.005-05:00

I apologize for taking a little break from my somewhat regular posts on this blog, but like most everyone else I am a bit tired of the ongoing winter. Even my dog (Ollie) goes and hides when we turn on the Weather Channel now. It used to be his favorite show.

It seems that between the ridiculous weather and the constant bombardment of bad economic news, real estate agents up here in the northern climes are taking it harder than anyone. Just the other day there was a report of an agent jumping out the window of a tall building...although it was only from the first floor. I'm not sure if it was due to these issues, or just a boring continuing education class that he was attending at the time, but I heard the only injury was a severely bent pin on his name badge. All reports are that after a couple weeks of therapy he will be just fine (although the name badge may not be as level as it once was - and probably much more difficult to get pinned).

Interestingly enough, showings have picked up in Northern Minnesota this past week. Maybe people are fighting back by actually going out and viewing lakefront real estate, even with all this snow on the ground and several feet of ice on the lakes. I guess it's kind of a Minnesota thing to only let the weather push you so far.

Well, Ollie just went over and turned on the Weather Channel while I was typing this, so his spirits must be picking up, too. Oh look...it's supposed to be 60 degrees or so by Tuesday. And this is really something...CNBC says the price of gas is going to 99 cents per gallon by early May!

Part 6 of Series..."What to Think About When Buying Lakeshore"

2008-04-02T00:15:00.005-05:00

Part 6: How Much To Offer

"You can tell that...x#*f~!x/#%...to...!" That's probably not the kind of response you want from the seller if you are trying to buy a lake place you really like.

It's certainly no secret that the real estate market has had a bit of a downturn over the last couple of years. The media has given us all plenty of informative reports on that. But make sure you don't rely entirely on what you read in the paper or see on TV when you find a lake property that you know is the right one for you.

In my last article, I showed average list prices and sale prices for single family waterfront properties throughout all of 2007 in the Northstar MLS. What you will notice is that the actual average sale price ends up being about 95% of the list price most of the time. So when one particular lake cabin stands out from all the others you have seen with your real estate agent, how much should you offer on the initial purchase agreement? The best advice I can give is to put yourself in the seller's shoes. How would you respond to a similar offer on your property?

Let's assume the lake home or cabin you are interested in has been on the market for 123 days, and is priced at $379,000. However, it was originally priced at $399,000, so you know the sellers either are somewhat motivated or they thought the first price they listed it at was a little high. In their minds they have already come down $20,000, so anything you offer less than that is seen as an extra price reduction they are potentially giving - even if it was originally priced higher than it should have been.

The first thing you should consider is how this property compares to others you have seen in this price range. If you have seen a dozen places and this one stands out from the rest based on the quality of the lake, the type of lakeshore, the attributes of the lot, and the integrity of the structure, then you can be assured that other lakeshore buyers will be noticing these same things. You can probably be quite confident that if you aren't willing to pay somewhere near the list price, the seller will probably find someone else who will. If they have a good real estate agent representing them, that agent should be giving them this same advice.

Now that's not to say that you have to offer full price. But if you come in with an offer of $300,000, you probably won't get much of a response...or you might get one similar to the first sentence in this article. Once you insult a seller, it gets quite difficult to get them to want to work with you again, so be careful if you really want to buy their property!

I've seen plenty of buyers end up paying more than they would have had to for a home, just because they insisted on making the initial offer so low that it wasn't even reasonable. When this happens, the seller tends to either not counter the offer at all, or they make a counter-offer that is very close to their list price. Generally, that creates bad blood between both parties. But if the buyer really wants the place - which many times they do - they are oftentimes the ones that end up giving in the most. With a more reasonable offer at the outset, they very well would have ended up with a better price through more friendly negotiations.

Obviously, there are many factors to consider when you decide how much you will pay for any property, and there are plenty of them that are genuinely overpriced. But over the years I've found that lake property owners seem to have a special attraction to their unique parcels, and many times they are willing to wait until someone comes along who seems to appreciate their place as much as they do.

If you have decided that this is the right one for you - and that the price is not too far off already - make sure they don't think you are trying to take them to the cleaners. Otherwise, you might not get another chance at it.

The Real Scoop on Waterfront Sales...Month by Month

2008-03-27T14:31:00.008-05:00

As I ride around with clients looking at various lake homes, I always get questions from them relating to typical market times and other sales statistics. I can generally answer these within reason without doing a lot of research, but I thought it would be interesting to delve a little further into the exact statistics for an entire year.

The difficulty in finding good information on this lies in the fact that there are nearly 20 different multiple listing organizations throughout Minnesota, and another 25 or so in Wisconsin. Each of these organizations has their own unique method of displaying information, and there is no realistic way to combine statitics from one organization with those from all the other areas - unless I had several days of nothing to do other than manually combine them into one big spreadsheet. Obviously, the sales statistics in Kenosha, Wisconsin may not be a good indication of what is happening in Bemidji, Minnesota, so it would be kind of fruitless to attempt this undertaking anyway.

At the current time, the Twin Cities Multiple Listing Service (also known as Northstar) is the most comprehensive one there is. It is really a combination of several individual MLS organizations around the metro area, but it also extends much further into other areas of Minnesota and Western Wisconsin. Many real estate companies in outstate areas have joined Northstar - in addition to their local MLS services - to do a better job of marketing their listings to a larger audience. So by using statistics from Northstar, we are getting a pretty good overview of waterfront sales throughout a fairly large region.

OK...we got the boring stuff out of the way. But I thought it was important for you to understand just how confusing it is out there in the real estate world, and why even with the ease of the Internet it is still cumbersome for consumers to search for real estate throughout wide geographic areas.

Now let's get back to the typical waterfront buyer and see what might be important to them. A typical day of lake house hunting might involve showings on ten different properties in the course of about 200 miles, versus maybe ten houses in twenty miles for an in-town buyer. This is because lake property buyers are normally more concerned about finding the right type of lake - along with the house that fits their needs - within a certain distance of their work (by the way, buyers in search of lake cabins may very well be looking over an even larger area that is a certain distance from their home).

If a buyer is looking for a 3+ bedroom lake home, built 1990 or later, on a 500+ acre lake, under $600,000, and within one hour of Minneapolis...we will be driving most of the day to find enough of them to look at (as of today there are only 15 of them on the market that fit this criteria). In other words, it's going to be a long day in the car with lots of thoughts running through everyone's heads.

The first couple hours are always easy. There is a lot of conversation about each other's work, family, and so on. The buyers are excited to get inside the first lake homes and get a feel for what types of things they can expect to find in their price range. Unfortunately, most of the time their expectations are a little higher than reality. So as the day wears on we begin to talk about average market times, the percentage of list price to sales price, the best time of year to buy, remodeling costs, the distance from Venus to Pluto...and so on. That brings me to what I was going to write about in the first place: the market statistics for 2007, month by month.

By going through the single family waterfront sales on Northstar MLS in each month of 2007, we can get a fairly good correlation of the amount of waterfront sales - along with market times and other statistics - in relation to the time of year they occur. Here is that breakdown:

The information below is based on average list price at time of sale, and average sale price. The average days on market are total days on market, even if listed with two different companies during that time period

January
Sold Properties - 249
Total Avg Market Time - 165
List Price - $397,046
Sale Price - $380,326
Percent of List Price 95.8%

February
Sold Properties - 262
Total Avg Market Time - 159
List Price - $421,412
Sale Price - $403,875
Percent of List Price 95.8%

March
Sold Properties - 307
Total Avg Market Time - 171
List Price - $403,559
Sale Price - $388,547
Percent of List Price 96.3%

April
Sold Properties - 441
Total Avg Market Time - 171
List Price - $443,372
Sale Price - $420,885
Percent of List Price 94.9%

May
Sold Properties - 473
Total Avg Market Time - 152
List Price - $429,403
Sale Price - $410,695
Percent of List Price 95.6%

June
Sold Properties - 524
Total Avg Market Time - 145
List Price - $435,710
Sale Price - $417,835
Percent of List Price 95.9%

July
Sold Properties - 512
Total Avg Market Time - 169
List Price - $431,954
Sale Price - $411,677
Percent of List Price 95.3%

August
Sold Properties - 413
Total Avg Market Time - 150
List Price - $401,039
Sale Price - $380,417
Percent of List Price 94.8%

September
Sold Properties - 325
Total Avg Market Time - 183
List Price - $413,349
Sale Price - $391,185
Percent of List Price 94.6%

October
Sold Properties - 339
Total Avg Market Time - 186
List Price - $433,318
Sale Price - $408,916
Percent of List Price 94.4%

November
Sold Properties - 214
Total Avg Market Time - 166
List Price - $396,617
Sale Price - $373,373
Percent of List Price 94.1%

December
Sold Properties - 187
Total Avg Market Time - 179
List Price - $446,749
Sale Price - $416,514
Percent of List Price 93.2%

So, what does all this mean? I don't know, but at least it's not a secret anymore. And just like we all knew before I spent the last several hours compiling this, there are more waterfront sales in the summer than there are in the winter!

Oh, and I guess if we go out looking at lake properties, we'll have to find some other things to talk about now.

Minnesota Isn't Too Bad After All

2008-03-22T21:11:00.005-05:00

My family and I have been down on Mustang Island on the East Texas Coast for a few days, visiting relatives and getting a needed break from the monotony of winter. The weather has been great - mainly in the upper 70s - and there's been plenty of sunshine to give us some attractive sunburns. But along with the great weather they can offer, these southern climates also have their share of negative aspects that we don't have to think much about up north.

It certainly is refreshing this time of year to get up and have your morning coffee on the deck in a pair of shorts. In Minnesota you still have to wear several layers of clothes to do that, and most likely your deck furniture is still buried under the snow. But those of us who are native to the north country aren't used to checking to see if there is a scorpion under our chair before we sit down, which is not a bad thing to think about down here.

Although it is common to find a few pickers on a walk in the woods almost anywhere in the Upper Midwest, Texas lawns can be filled with some of the most heinous plants you can imagine. They will try to poison you with every step, or jab through your clothes if you try to sit down (barefoot walkers and thin shorts wearers beware). And when you are taking a short cut to the beach, be sure to watch out for the rattlesnakes sunning themselves on those inviting sand dunes!

But just when you think the plants and land critters are a little scary, just spend a few hours on the ocean reeling in some of those interesting creatures that resemble several of the species in Star Wars! It seems that almost everything that lurks down there has a goal of causing you immense pain and suffering if you dare to pull it out of the water.

I know we get a little tired of the mosquitoes up north, but other than them and a few ticks we really have it pretty easy. We have lush lawns to play in, clear waters to swim in, and some very pleasant weather during the summer months. If you want to sleep out under the stars on a warm July evening, you may end up with a few itchy bites in the morning, but you will most likely still be alive to scratch them.

But don't get me wrong, I love the warm weather and expansive beaches that offer a respite from the seemingly never-ending winter. The sunshine and fresh air down south can create a renewed energy that helps us remember why we put up with the long winters up north, and it gives us a glimpse of what we can look forward to in just a couple of months - or maybe three.

So hang in there. I've seen the sunshine and it's heading your way...and I don't believe it's bringing all the other weird things with it.

Oh yeah, I forgot. There is one more wild and crazy animal that I've come across this week on the beaches down here in Port Aransas: The Spring Breaker. Maybe that's why we have winter in the first place...to keep them away!

Happy Easter

Opportunities Are Easy to Recognize...Once They're Gone!

2008-03-17T10:17:00.004-05:00

I woke up this morning to another onslaught of bad economic news, along with the collapse of the giant Wall Street firm Bear Stearns. Each day we are bombarded with more and more stories of business tragedies, higher gas prices, and recession worries...along with sagas of people losing their homes to foreclosure, and plenty more that are deciding to just walk away from their mortgages rather than making payments on a place that is not worth what they now owe.

There is certainly no shortage of blame to go around, but a lot of the problem has to do with people not recognizing the reality that is staring them in the face. I thought it was pretty obvious a few years ago that appreciation of 10%-20% per year - on homes in many areas of Minnesota - could not continue very long, if wages were mostly stagnant. It seems that when times are good, a large portion of the herd forgets that they might not be good forever!

But I'm not an economist. I'm only a simple real estate broker who makes bad decisions on things...sometimes, just like a lot of other people do. However, one thing I do know a lot about is waterfront real estate, and the trends that point to strong sales for many years to come in those types of properties.

I would guess that about 98% of the population (if not more), wishes they would have purchased lakeshore property ten or twenty years ago. From being in this business, I have heard many of the stories of how some one's dad or grandpa could have purchased an entire mile of lakeshore on a now popular lake for perhaps $10,000...and they only had to pay $24 per month with 2% interest until it was paid off. Or they might remember the family cabin that six siblings could have bought for $40,000 in the mid 80s, but no one could scrape the money together. Almost everyone has at least one of these tales of woe.

After specializing in waterfront properties for over 20 years, I can tell you that I have never seen so many opportunities to purchase some pretty amazing real estate for less that what the real value is. When you consider the fact that many of the lakeshore lots have not really dropped very far in price (if at all), and the cost of building has not gotten any less expensive, you start looking at the ability to buy the structures on these lake lots for almost nothing. Even if it needs a little remodeling, you can end up with quite a place for way less than what it would cost to replace.

What makes this opportunity even greater is that most people love to follow the pack for reasons of safety. They love to recite "the sky is falling" comments that were stated by 237 different analysts on the thirteen different morning news programs they watched before work. And, they just don't want to take a chance at making a mistake on this important of a purchase!

I would never advise anyone to be reckless in the pursuit of any type of real estate. It only makes sense to do your homework, and use all the tools in your arsenal (including the market knowledge and sales data your Realtor can supply) that you have at your disposal, before you make any decision to buy a particular property.

But I would also caution you not to be overly hesitant on buying while the bad news is a brewing. Otherwise, when the herd starts moving again you might be at the back of the pack. And who knows what will be left over?

One Man's Trash...is Sitting on Your Property Line!

2008-03-13T12:58:00.008-05:00

Well, it's that lovely time of year again in the Upper Midwest, where all the items left in the yard last fall - and all the ones the dog left over the winter - come peeping out of the grayish snow. It doesn't usually take a whole lot to get everything cleaned up and looking sharp again, but there are some properties where that just isn't going to happen.

When you drive through a residential neighborhood in town, the fronts of the houses typically face the street. For the most part, you won't see a whole lot of extra items sitting around because they are out there somewhere in the back yard. But on lake properties, the back of the house is facing the street (some people will argue this point, but I stand behind my opinion here), and so all these attractive treasures add to the curb appeal!

There is not a better month for junk viewing than March. We all know it as kite-flying season, but up north it should also get the distinction as "Ugly Yard Month." Leafless trees and bushes are just no competition for these lonely yardicles (new word that I created) that have been hibernating during the cold winter days. They are very much attracted to sunshine, which my daughter found out the other day after she stepped in one of my dog's yardicles that immediately stuck to her shoe. But here I go again off on some tangent, talking about things that have nothing to do with lake properties.

What I was really trying to get at was how to deal with lake homes and cabins where the next door neighbor is a little slow at going to the dump. You know the kind of place I'm talking about: old docks, boat lifts, snowmobiles, bird houses...and a supply of old pipe in a vast array of sizes, extensive enough to start a plumbing supply store.

If you are the next door neighbor and you are thinking of selling your place in the near future, you may have a bit of a challenge on your hands. Here is an article by Brad Boisvert that talks about some ways you might go about dealing with the situation. But one thing you always need to keep in mind is how to approach this person without turning them against you and making your sales process even more difficult. However, it is wise to work at it rather than ignoring the issue, because it could very well affect your value or the ability to get your lake place sold.

As a prospective real estate buyer, you are probably starting to get the urge to go out and drive around some of the lakes as the days get warmer and the daylight gets a bit longer. You have been sitting home looking on the Internet at all these great photos of towering pines, sand beaches, sparkling blue waters and nostalgic cabins...and now it is time to hop in the car and get a sense of the real thing. But surprise...surprise, there were no photos on the website that showed pile of junk next to the neighbor's garage. And even this cute little cabin - you drove two hours to take a peek at - has several well-worn items sitting around that didn't show up online. By the way, don't worry too much about the items on the property you are interested in, because removal of debris will be covered in the purchase agreement.

Well, let's go back to the beginning of this article and consider the overall issue. First of all you are looking at the back yards of these properties, and most people (unless you are on a small lot in the city) do have a few things sitting around their yards. In addition to that, lake homes and cabins require extra amenities like docks, boat lifts, yard tractors, and extra lumber for repairs on decks and sheds that are more prevalent here.

Secondly, it is "Ugly Yard Month," and it will get better once the buds come out. Try to look at the density of trees in the vicinity of the items to see if they will even be noticeable once the outdoor season begins. And also remember that you may want to leave a few things out behind your garage, so they will fit neatly next to your new neighbor's pile.

But if the lake property you are most interested in has an overabundance of these intertwined gizmos - that you know are going to be just a little too agonizing for that neighbor to get rid of - you may want to either make your offer subject to the seller taking care of it before closing, or just pass on this one for now. Chances are that if the seller has any kind of a relationship with this person, he may be able to help them haul this stuff away. If so, it probably won't collect again for some time, since it has most likely taken many years to grow this big.

But make sure you are comfortable with the situation, as I have seen a lot of interesting things in this business over the years!

Now Hiring Lake Specialists!

2008-03-10T17:26:00.007-05:00

As our business continues to grow each year, we always have several agents (both brand new and experienced) approach us on joining our company. In the past six years, Lakehomes.com Realty has grown from little more than a husband and wife team, to a company with waterfront specialists in many areas of Minnesota and Western Wisconsin. But due to our popularity on the Internet, we have a steady stream of buyer and seller requests in market areas where we could definitely use a little more help...and any agent who joined us in those places would have wide open markets to work in. Not a bad deal for a motivated individual!

Sandy and I have been lake specialists for our entire real estate career, and it has always been easy for us to stand out from the rest of the agents because of our differentiation. As the Internet began to take hold in the mid 90s, we were able to create incredible search results on many of the search engines to make it even easier for potential customers to find us. Back then only 2% of the real estate buyers were using the web to search for homes...today it is over 85%!

Niche companies like us - in any field - are suited perfectly for Internet shoppers. It is so easy to type a term like "Minneapolis waterfront property" or "Duluth lakefront real estate" into a search engine to find what you are looking for, rather than a more generic string of words. It is true in anything you are searching for these days.

If someone is looking for information on "Mille Lacs Lake crappie fishing," they can type that into a search engine rather than looking through a pile of fishing publications hoping to find a pertinent article. And who would think of purchasing a $50 medical journal anymore to search for a disease they might have, instead of just entering those symptoms into the Google search bar?

Most of the agents that have come to work for us understand the strength of this differentiation. As the real estate market has slowed overall, many of our agents are as busy as ever because of their ability to truly say something different. But beyond just telling the sellers they will do a better job in exposing their property, they can actually prove it with strong search results from many of our waterfront websites. And with nearly 90% of all buyers using the Internet to shop for real estate, there isn't much doubt in where those listings will get seen the most.

Whether you are an experienced agent who loves selling waterfront properties, or someone who just wants to sell a few places around your own lake, we have some pretty interesting opportunities right now. And if you enjoy talking to potential clients, we can give you something quite different to talk about with our unique form of marketing! It will certainly give you a foot in the door.

When Sandy and I created our niche business nearly 20 years ago, hardly anyone in real estate specialized in anything. Other than differentiating between commercial real estate and residential real estate, most agents listed and sold pretty much any type of property they could - and the best way to get the phone to ring was to run numerous ads each week in the newspaper. Unfortunately, that doesn't work too well anymore, and a lot of agents have had to leave the business because they weren't able to change along with the times.

Today, there are a lot more agents who market themselves as specialists in all facets of real estate - from hobby farms to condos - and yes, of course, there are plenty of lakeshore specialists. But we have tried to take it a step further as an entire company of waterfront specialists, leaving no doubt that that is what we do best. Therefore, any agent who comes to work for us can save a considerable amount of time and money by avoiding the high costs of creating his or her own image in this high-end niche market. Many of our brand new agents have certainly proven this by becoming multi-million dollar producers in their first year with this built-in differentiation.

There is one negative in becoming a specialist in anything; it is hard to say you are also a specialist in something else. Although, it can be quite comical to look through a real estate guide and notice that some agents specialize in nearly everything: residential real estate, commercial real estate, townhomes, resorts, gas stations, apartment buildings...even timeshares. It's kind of like a doctor specializing in heart surgery, brain surgery and delivering babies. To be fair, a lot of our agents do end up selling other types of real estate - especially large acreage and recreational properties - because many of the buyers that are interested in waterfront property are also looking at those types of things.

If you have a passion for waterfront properties, there isn't a more enjoyable area of real estate to work in. And as many of our agents will attest...the boss isn't a bad guy either! However, if you don't believe them, you can call me at the office at 866-327-9889 to judge for yourself.

Part 5 of Series..."What to Think About When Buying Lakeshore"

2008-03-07T09:59:00.005-06:00

Part 5: Where's the Sun?
Spending time at the lake goes hand in hand with spending time in the sun...for most people. Some folks would rather keep that big bright beast away from their skin, but it seems they are the minority here.

The way this winter is dragging on, it's not a wonder that we need to get a little bit of warmth back in our bodies to recuperate from these dreary days. Even those who love winter are probably not loving it all that much in the middle of March. So, for many of us, our thoughts start turning to visions of sun-soaked days lying on the beach or the dock. Of course, that is why most all of the flights are booked to Mexico and Orlando this time of year - but those that are stuck in the north country are just looking out their windows each morning to see if the snow has melted yet here in Minnesota.

I think I got away from what I was going to talk about in this article, because I also started dreaming about the beach. It sure doesn't take much to get my mind to wander this time of year.

This article is supposed to be about which direction you want to face when you purchase a lakefront home or cabin. Those who love the sun generally ask for southern or southwestern exposure so they can get the strong rays all day long. But many people who live on those parts of the lake tell me that there is also a negative that goes along with that...they tend to get the most wind, because prevailing winds in much of Minnesota during the summer months are from the south or west. If you have a sand beach along with frequent waves, you will probably have quite a bit of debris to clean up on your shore fairly often.

I also get a lot of requests for west facing property, since buyers typically understand that it offers great afternoon sunshine and spectacular sunsets. But, remember that in the afternoon, the sun becomes lower in the sky and you may be sitting on your deck looking right into a big bright ball of fire. Also, the sun actually sets more to the northwest in the summer, so make sure you are not facing southwest if you want to see the best sunsets.

That brings me to the least sought after direction - which is north. Facing north really isn't as bad as some people believe. My cabin faces due north and I get sun all day long. I also avoid those prevalent winds that come out of the south many days during the summer months. And, for the most part, north views still bring in pretty nice sunsets that occur in the northwest skies.

Finally, I'll talk about east facing lakefront real estate. As we all know, facing east will give that refreshing early morning sunshine...kind of like a Florida Orange Juice commercial. It can be a great start to the day when those first rays of the day find your property and shoo away the dew from your deck and lawn after the damp night air. But, if you want the afternoon sunshine (especially if you have large trees or a hill to the west of you), this may not be the ideal direction for you to face. Since the sun is a bit lower later in the day, those trees and higher elevations bring an early darkness to the east side of the lake.

Well, that is a quick rundown on what to think about when you are looking at any particular property. However, unless you have a very strong conviction about which direction you want to face, it is best not to limit your criteria too much until you look at the actual properties. Every lake place has its own pros and cons, and you might be missing out on a spectacular waterfront property if you tell your Realtor to only look for the ones that face in a particular direction.

Why Agents Need Great Internet Exposure

2008-03-04T12:50:00.003-06:00

The other day, Craig Mische emailed me to let me know about a new sale he had. Only this one was different...the buyers came from the Internet and purchased the home without seeing it! I have had a few of these also because of our Internet strength over the years, so I wanted to briefly talk about it.

Craig actually did help out quite a bit by going to the property and shooting a high definition video for them. With that they had an acceptable comfort level to make an offer, and were able to come to an agreement on price and terms. I believe that Craig's website was also a factor in the buyer's comfort level with him, which probably made the process easier overall.

Many agents rely upon their brokers to provide a company website that will give information to potential buyers and sellers who come across it. Craig's own website is probably better than most company sites, in that it is full of great information on Alexandria and the lakes that surround it. His blog keeps viewers informed of new happenings and sale prices in the area, so they keep coming back to see what is new. And, they get to know him personally, which is obviously important in any type of sales.

On our website at Lakehomes.com, we try to provide as much good information as possible for the consumer, so that they don't have to look anywhere else. We also try to add a little extra information about our agents in the Agent Profiles and our Agent Pages on LakehomesUSA.com. These things - combined - can not only help the consumers understand who they are contacting ahead of time, but it helps the agent attract business directly to themselves through our strong search results.

But if you are really serious about the real estate business, create a good website for yourself in addition to anything your company provides. As many of our agents have found, your exposure will increase exponentially - including increased search results for you and your listings - by combining all the linking capabilities between the company sites and your own. It will definitely put you several steps ahead of the pack.

Part 2 of Series..."Hints for Waterfront Sellers"

2008-02-28T12:20:00.003-06:00

Part 2: Roll the Film!
I am actually going to combine a few thoughts into this article that all have to do with giving a buyer the best visual perspective of your property. By doing a few extra things, you can create an emotional attachment to your lake property that a buyer may not get from others that they walk through. So, lets open the photo album and charge up the battery on the camcorder.

In Real Estate 101, they always teach you about staging a home. That means getting rid of the clutter - inside and outside - and taking down a lot of personal photos that adorn the walls. What generally happens if you don't hide the family portraits is that the buyers start looking at them and forget to look through the home. I certainly agree with most all of this, except that waterfront properties are a bit different.

Lake home and cabin buyers are normally coming from a neighborhood that is not on the water. Their daily lives have consisted of getting up in the morning, feeding themselves (and maybe their kids), and then going to work and whatever other routine might take up their evening hours. It is kind of like the way most of us live. But now they are thinking that a lake place might change their daily ritual, although they are not quite sure to what extent.

Over the years I've noticed that a lot of these lake buyers have never lived on water before - and many of them have not even spent a lot of time around a lake - so they really don't know what to expect. Just like the way they can't imagine what your home will look like without the red shag carpet or tin awnings keeping the sun out of the house, they also have a hard time visualizing what joys could await them on this resort-like setting. So...you have to show them!

Most likely you have had a few good times at your lake place. Whether it has been your year-round home, or a weekend getaway, you or someone you know probably shot a few photos. These might involve swimming, boche ball, water-skiing - or even sitting around having a few beers, but they will create an image in the potential buyer's mind about what goes on at the lake. And the fact of the matter is that most people who are interested in buying a lake property are looking for a little fun to go along with it, so you most likely won't offend them if you are not dressed appropriately on these pictures. Also, the buyers will be able to see your property at various times of the year, instead of all of your photos being shot this week with dirty snow or brown grass.

Secondly, begin shooting some of your own photos now, so that you or your Realtor can use them in the marketing of your property, and continue shooting more during the time your property is on the market. Buyers love to see lots of photos - especially on lake properties where they are coming from further distances. If you leave all of the photography up to your agent, they may not hit it at the best time due to inclement weather or the time of day. You can be an effective partner in creating a faster - and potentially more profitable sale for yourself - by helping your agent with this task. Just email them any digital photos you think are good so that he or she can pass them along to possible buyers.

The last thing I want to talk about is an idea that is still fairly unique. It can be used in two different ways, or a combination of both. This one involves your video camera.

When a buyer is in your home or on your property, they are just getting a snapshot of what goes on there. If you put out a lot of photos of good times, they are getting a few more snapshots. But what if they can watch a video of not just your property, but also other lake activities and atttractions such as fishing, interesting landmarks, public islands and beaches, wildlife...and anything else you can think of that made you love your life here. You can have your VCR or DVD player all set up to watch it just by hitting "play" (just leave a large enough note explaining the procedure so that they see it). It will really add an extra dimension to their visit - even more so than the chocolate chip cookies you baked.

Finally, if you want to go all out, have extra copies of DVDs for them to take with them...or for your agent to send to them. In my mind, this is 10 times stronger than any virtual tour!

What About Boathouses?

2008-02-26T15:24:00.004-06:00

There is something special about an old boathouse hanging over the water's edge. Unfortunately, building codes have eliminated most of the ones that we used to see around our lakes up north. In fact, in a lot of areas it is even difficult to fix up the structures that are already there. However, a new Minnesota law from 2006 allows owners of these once common structures much more leniency in their restoration or replacement.

The photo above is from Shorline Construction on Lake Muskoka in Ontario, where grandiose boathouses have been a fixture on these expansive and scenery-filled waters for over a century. However, as this article states, even in an area where residents have looked fondly upon these architectural masterpieces, they know when they have too much of a good thing. I guess it's kind of like Don Henley and Glenn Frey wrote in their moving song, The Last Resort..,"You call someplace paradise - kiss it goodbye."

It's true. The things that create the most awe are the same things that most of us want to have for ourselves, but we may not want others to have them. We want the best beaches, bigger houses...and yes, boathouses, but they are expensive and hard to come by. That is why laws have been created to protect us from these villains who can afford to get the things that we might not be able to.

Nearly all of us would love to have one of these beautiful structures on our shoreline...the perfect place to entertain guests at the water's edge. However, not many of us would want our next door neighbors to have them on their 100 foot lots - blocking our views of the lake and impacting our privacy. Many people also like the idea of old resorts with their sandy beaches and relaxing grounds, and a lot of us would like to own one for our personal use. But no one seems to want one next door to them.

So as our population increases and our lakes become more popular, we will continue to lose some of our ties to the past. Boathouses that once housed magnificent tour boats and yachts on our larger lakes will be mostly a memory. However, many counties do allow smaller accessory buildings near the water - generally lacking character and much more of an eyesore (in my opinion) than the larger showplaces of the past.

But if you are lucky enough to have one these water-based boathouses on your lake property, take good care of it. It will be very difficult to replace!

Part 4 of Series..."What to Think About When Buying Lakeshore"

2008-02-21T11:09:00.003-06:00

Part 4: What's Your Radius?
Today I'll talk about the most important topic for nearly all cabin buyers...how far will they go? We're not as concerned here about second home buyers or those that are thinking about getting a place for retirement. Instead, we'll focus on the true weekenders who need to get from their home or place of employment on Friday and be back there by Monday morning most of the time.

Obviously, the largest crowd of cabin buyers spends the majority of their time around the Twin Cities. With a metro population of over 3 million people, you can't blame them for wanting to get away. If fact, the amount of residents throughout the 13 county metro area is about the same as the rest of Minnesota...combined with North and South Dakota.

When Twin Cities residents start the process of searching for a lake cabin, they generally think in terms of how many hours away from "The Cities" they are comfortable driving. The real problem begins when they look at a map to see how far 2 hours...or 3 hours...will take them. On a good day, two hours can get you to Mille Lacs Lake or Alexandria, depending on which part of the metro area you are beginning your trip from. But on a Friday afternoon, it might only get you from Eagan to Maple Grove! That will definitely cut into your play time at the lake.

Many of the buyers I talk with tell me that they want an "up north feel." Of course, many of the residents around Minneapolis and St. Paul came from up north because there was not a lot of opportunity for jobs in their home towns - or they were hired by a Twin Cities company out of college. Now they have young kids, and they are hoping to give them some of the same experiences they had from growing up around those northern lakes.

But many of these younger families live in the suburbs on the south side of The Cities, which makes it a little tougher to get "up north." Although, if you live on the north side of The Cities, some of the suburbs there seem to keep growing, and are almost up north already!

The other thing I hear most often is that they want to stay within a 2 hour radius of their home. Combining a 2 hour radius with an up north feel is really hard if you live in Lakeville. And if you work typical weekday hours, it won't be much easier at 3 hours. So......what does a person do?

Well, first of all decide what you really want out of a lake place. I find that most people who say they want a certain type of property, or a particular area, only do it because that is what they are most familiar with. Decide on the size lake you want for the type of recreational activities you enjoy the most, and other factors such as proximity to nearby towns for shopping or restaurants. And decide how far you can realistically drive without giving up precious family time at your new cabin.

The next thing you need to do is define several of the potential areas that might work for you. Just by looking at a state map you can see groupings of lakes that will fit into your desired drive time. If you live in Apple Valley and want to stay within about two hours of home, check out the lakes around Mankato and New Ulm to the south, and then look at areas like Litchfield and Willmar to the west for the most waterfront opportunities. You may also find some good offerings near Amery or Siren, Wisconsin. But by going directly north from the southern suburbs, you may only end up in the outskirts of the ever-expanding metro area, and you may not find the type of surroundings that will feel as much like you are "away from it all." Also, because you will not be much further out than commuting range, many of the lake places will be year-round residents and the prices will tend to be higher.

Here is another important thing go keep in mind as you scan the maps for possible lakes to choose from: there will be many other water bodies spread throughout your chosen drive time that might not be as easy to find, but they could be very good candidates for your perfect lake place. In fact, sometimes these smaller and less-known lakes are hidden gems that offer more privacy and solitude the their busier and more popular counterparts. You can often find these by doing some searches on various real estate websites for the general geographic area you have in mind.

After you figure out what is most important in these aspects, then you need to be honest with yourself (and your real estate agent) on how much you are willing to spend. If you have a price of $300,000 in the back of your mind, you will probably not be happy with what you see at $225,000. And if you are going to be driving 2-3 hours to look at these properties, you will be wasting a lot of your time in the process.

It is much better to tell your agent that you want to spend between $200,000 and $300,000, and that you would like to see properties throughout this range to get a good feel for value. As far as I know, it is still illegal for real estate agents to force someone to pay a higher price than that person wants to for property...and if they aren't able or willing to educate you on a wide range of possible values, find a new agent!

One more thing you should know about real estate agents is that most of them tend to work quite geographically, and may not be familiar with lake properties over a wide ranging area unless that is their true specialty. It is not a bad idea to ask them about lake property values in some neighboring market areas to see if you have a good feel for their ability to represent you properly in your search. A good agent will refer you to another real estate professional who can provide the best service for your needs, unless they personally have a strong comfort level in assisting you.

Owning a weekend lake cabin can be one of the most enjoyable experiences for you and your family. If you like having friends and relatives around, you will have no shortage of them coming to visit, and you'll gain a boatload of good memories to carry with you through the years. If you would rather just get away from everyone and spend your free time reading and recharging your mental batteries, that works too.

But make sure to be open-minded in your hunt for your perfect cabin. Minnesota and Wisconsin have good lakes everywhere, and you just have to be a little more adventurous to find them. "Up North" might actually be a couple hours south...and you are going to have a lot more time to enjoy it!

Waterfront Sales are Picking Up

2008-02-18T11:06:00.002-06:00

The cold weather seems to keep dragging on, but I caught a glimpse of the weather report this morning and the temperatures may be looking up for the weekend. It seems, though, that a few waterfront buyers aren't waiting for the thaw, as there are some decent sales starting to come in from several of our agents across Minnesota.

Craig Mische, from our Alexandria Office, sent in a couple new sales this morning totalling nearly $1,000,000. Mike Stanwood has also had some very nice sales over the last few months - even in the dead of winter - up in the Breezy Point and Whitefish Chain area. His average price seems to be holding in the $500,000 range also, so it sees that the price reductions in the half million to $750,000 range properties have brought a lot of interest. We have noticed an increase in emails from prospective buyers in Grand Rapids, the Northern Twin Cities and Rainy Lake - and Brainerd, Bemidji and Ely leads have remained fairly steady.

On the listing end of the market, Chris Dubose has had quite a few calls over the last week from lake property owners around Chisago Lakes and Balsam Lake, Wisconsin, who are trying to beat the rush by getting their lake places on the market. And Sandra Ortman and Terri Haapoja added this interesting lake property on Little Wabana Lake just north of Grand Rapids with over 70 acres on the water. I also just listed this great lake home a few miles out of Grand Rapids on Prairie Lake, with 800' on the water and its own peninsula.

All in all, we are seeing quite a bit of activity on both the listing and purchasing end of the market for waterfront properties. Let's hope it continues, because having a balanced market this year would be good for everyone!

The Lull Before the Storm

2008-02-14T21:20:00.003-06:00

I don't know if everything will go gangbusters as soon as the weather warms up a bit, but for now it seems that buyers are in a bit of a holding pattern on even going outside. You can hardly blame them: who would want to be out looking at unheated cabins when it is 20 degrees below zero outside...and 30 below inside those doors?

February gets to be a bit of a drag for all of us in the Northland, but we always seem to make it through. In just a couple weeks it will be March 1st, and that is about the time the sun starts throwing off some of its warmth. The skating rinks will be closing up shop until next December, and the ice on the lakes won't be too far behind. And best of all, it is a time for everyone's spirits to get an uplift - and that normally brings a lot of buyers back out from their winter naps.

If you are thinking of putting your lake place on the market, it is not a bad idea to get it ready for this early spring rush. These are the buyers who want to be in by the Fishing Opener, so they are a little bit more motivated. If I were going to sell my lake place, now is the time I would put in on the market!

Part 1 of Series..."Hints for Waterfront Sellers"

2008-02-11T14:34:00.000-06:00

I figured that since I created an ongoing series for waterfront buyers, it would only be fair to help out sellers with some of the things I've noticed over the years. When you live in any home, you tend to place things where they are comfortable for you. But sometimes those same items may be impeding your ability to get your property sold. People make decisions emotionally when shopping for real estate, and lakeshore homes and cabins are probably even more likely to bring out those emotions...for better or worse! The first article in this series is on creating the best water views.

Part 1: Where's the View?
Lakeshore buyers have a variety of things to think about in their search for the best home or cabin to meet their needs. Not only does the structure have to fit their desired size and style, but they also need to picture themselves enjoying the property and the lake as much as they would the house. It's not that off-water buyers aren't concerned about the overall setting and its surroundings, but waterfront real estate just seems to have a unique ability to mesmerize potential buyers in a way that other types of properties don't.

Lakeshore buyers like views - there is no doubt about that! Many sellers hurt themselves right off the bat here, and it starts from the second the prospective buyers enter the door. Let's start with a walk through the house....

Think about how many people use back doors, garages, or side entrances to go in and out of their homes because that is generally the best place to put shoes when entering the house, and it works great for throwing all the extra clutter. Almost all of us do it, and it works just fine in everyday life. However, we also assume that we should bring the buyers in this way, so they won't dirty up the floor around our main entrance - or maybe we just don't have a key for that door anymore. What does it matter anyway; they can look around once they get in the house?

So they get routed through a dark garage, into a dark mud room, and then down a dark hall before they can get a view of the water. It is kind of like calling a company about a problem, only to get re-directed to three more people before you find the answer you need. Probably not the best experience, and unfortunately that is what the buyers will remember once they leave.

Instead, let's assume your entrance is bright and has immediate views - or at least easy access to views - of the lake. Let's assume the windows are clean, void of dark curtains, and are easy to approach without tripping over kids toys or having to peek around a stuffed moose. What then tends to happen is that the buyers are pulled through the house directly to those outdoor views...kind of like a scene from a zombie movie. So now that we have them there, what's next?

Generally, the next thing they want to do is get outside to the deck to get a better look. Of course, this is sometimes difficult because of the three of four locks from the top of the patio door to the bottom, along with the sawed-off broomstick jammed in tightly to keep out intruders. And many times there is a curtain, or some type of funky shade, hiding all those security devices.

Once they finally find their way to the deck, things are looking up - except for the sign that says: "Rotten Boards, Please Stay Off!" Well OK, we can just send the buyers around the house once they get their shoes back on. By the way, a note here: It is a bad idea to ask lakeshore buyers to take off their shoes - because they do like to walk through the house and go outside to see the lake right away. You are interrupting their natural flow when you send them back to get their shoes.

But you already knew about all these things - about staging your home and creating nice traffic flows - so these buyers were excited when they entered your immaculate waterfront home. The curb appeal was great, the lights were on for added brightness, and the shades were all open...but something was still wrong!

You always liked your privacy and hated boats watching you from the water. Your house wasn't that far from the lake, but you let all your trees and brush grow thick to create a barrier from all that activity. And there was no way you were going to change that, because what if your house didn't sell?

Well, I will tell you that you will have a lot better chance not selling it if the buyers can't see the water. Sure they can take down trees once they move in - based on local governing codes - but remember that they buy emotionally, and this is not an emotional draw for most of them.

Of course, as Realtors we hear those same types of reasons all the time for why sellers don't want to improve certain aspects of their property to help create a quicker sale. They don't want to change carpets because buyers may want a different color, they don't want to replace a broken garage door because buyers may want a different style, or they may not want to put down some grass seed because the buyers may pave that area over. And, they don't want to clean out any brush or trim any branches because the buyers might want the added privacy. They might...but then again, the odds aren't with you on that!

Part 3 of Series..."What to Think About When Buying Lakeshore"

2008-02-05T20:36:00.000-06:00

Part 3: To Beach, or Not to Beach

Most everyone loves the idea of a sugar sand beach on their lakehore property. It's hard to dislike the sand running between your toes, and those balmy days of friends and family competing in games of beach volleyball. But before this dream gets too carried away, make sure to remember this isn't the Carribean!

Sand beaches are great; there's no doubt about it. But most Minnesota and Wisconsin lakes are quite limited on their availability of large beaches, and many of the best beaches still belong to the old well-established resorts or community parks. There definitely are private residences with great beaches, but be prepared to pay top dollar for these...if you are even able to get your hands on them at all.

It seems that about 80% of the prospective buyers I talk with ask about having some type of sandy shoreline. Some of this sand does extend a few feet onto the land, but rarely comes up much more than about ten or twenty feet. More likely, you will see a somewhat eroded sod shoreline dropping off a few feet onto some sand under the water. Sometimes buyers see this as an opportunity to dig out even more of their yard for a place to dump more sand - but beware of doing that, as it could lead to even more erosion of your property.

If you are willing to live with a nice hard bottom around your dock, without having to have a lot of sand up on the shore, you will find a pretty good variety of properties to choose from. When house shopping after ice-out, it is not a bad idea to wear some shorts or waders to take a little walk into the water and get a feel for the firmness of the sand, as it can be somewhat deceiving at times. However, if you see a lot of ripples in the sand, it is usually pretty firm. During the winter months you can always drill a couple of holes in the ice and push a pole of some kind into the bottom, or you can talk to a couple of the neighbors to get their perspective on the type of shoreline on that property.

Another thing to keep in mind is that sometimes sand only extends out to a depth of a few feet. From there, the bottom may turn rocky or mucky, so make sure you look a little bit past the edge of the dock if that is important to you. It is true that a lot of swimming, boating and recreational use around the dock will generally make for a more firm bottom, so if the other areas around there have not been used a lot there could still be some marginal soil.

Normally, the buyers who want some sand are concerned about kids and grandkids swimming pleasure. People sometimes believe that they can dump sand anywhere to create a "sand blanket," but it will usually not last a long time or have the same feel as a natural sand bottom. And remember that there are a lot of DNR restrictions these days on what you can and can't do past the high water mark.

If you can live without sand at all because your main concern is the beauty, serenity and access to the lake, you will be able to buy much property more for your money. This is where you need to sit down and really decide what is most important to you in your new lake property. If you keep seeing structures - or lakes - that don't meet your needs based on the price you want to spend, it is probably because you are also searching for the most expensive shoreline in the form of some type of sand. You will then most likely have to give up on either the sand beach, or the quality and size of the structure...or you may have to look at smaller, less expensive lakes.

One last thing to think about when purchasing homes and cabins with sand beaches is the quality of the lake. If the lake is clear, clean and for the most part weed free, there probably won't be a lot of maintenance involved in keeping your beach looking good. However, lakes that have a lot of weeds and debris floating around can be a constant source of work, and rotting weeds attract bugs and are sometimes littered with dead fish, so the smell can be an added problem.

Strong Website Activity

2008-02-02T08:48:00.000-06:00

In addition to Lakehomes.com Realty, we also own the websites at LakehomesUSA.com, OceanhomesUSA.com and RiverhomesUSA.com. These are waterfront websites that show tens of thousands of lakefront, riverfront and oceanfront properties from across the country, and they can give us a good gauge of what is going on not only in Minnesota - but all across the United States.

This morning I'm out in Moorhead, Minnesota, waiting for my daughter's hockey tournament to get underway and I had a little extra time, so I checked our recent visits and page views on those sites. As it turns out, yesterday was a huge day for activity on those sites, with nearly 30,000 page views. If that is any indication of buyer interest and what will be happening up here in the northland, we should be in for a good year in waterfront real estate sales.

A Different Kind of January Market

2008-01-31T22:50:00.000-06:00

I thought I would just give you a quick synopsis of what I have noticed in the waterfront market so far this year. Normally, I don't notice much of anything, because the buyers really aren't out looking at too many properties yet. But this year might be different.

Typically, we start getting our first buyer calls of the year for low-priced cabins and lots. I'm not sure why that is, but it seems to be the case almost every year. The closer we get to ice out, the price range seems to get a little bit higher, and then it begins to peak in early summer.

Now don't get me wrong; that doesn't mean that buyers will spend more for a particular property later in the the spring market, it just has to do - in general - with the price range of buyers that are actually purchasing. And, obviously, there are lake homes and cabins that sell in every price range throughout the year, so you certainly can't know exactly when the perfect buyer might come along for your property, no matter what price range it is in.

This year I am seeing a different type of buyer entering the market early. Instead of the calls for $100,000 cabins, we are seeing several sales at the $500,000 range already. And these aren't lake homes in the Twin Cities, they are cabins up north!

One thing that I have also noticed is that many of these properties have had some significant price reductions, so I think these buyers may have been sitting on the sidelines for some time just being patient. Whatever the reason, it is a good start to an early spring market...and overall that should be good for everyone.

Part 2 of Series..."What to Think About When Buying Lakeshore"

2008-01-29T17:28:00.001-06:00

Part 2: Remodeling Old Cabins

So, you've made the decision to buy a lake cabin. However, you don't just want any lake cabin...you really want to have some of that charm from yesteryear, and you figure you can always add on or remodel if things aren't quite right for you. You very well may be able to, but make sure you understand not only the integrity of the foundation and structure itself - but also the required setbacks and codes that you will have to meet in order to do the work legally. Things may not be as easy as they once were!

A lot of us still have memories of hanging out at the grandparents' cabin when we were young. It seemed like Grandpa would just tack another bedroom on when they needed a little more space. He did! And there were a lot of other grandpas who did the same thing.

Back in the 40s, or 50s - or even the 60s - there weren't a lot of people paying much attention to building codes at the lake. You could pretty much build wherever you wanted to on your lot, even out over the water in some cases. The cabin was a place to get away from all the rules, and the lakes weren't that heavily developed anyway, so what was the difference?

But all of a sudden, people started to like the idea of living at the lake instead of just visiting. Developers began to buy up larger tracts of shoreline and cut them up into the smallest lots possible to make the most on their investments. Sand beaches on empty lots - once easy to obtain - became a thing of the past as buyers sought out any type of lakeshore that was affordable to build on, putting environmental pressure on delicate areas of the lake.

It was about this time - during the 70s - that a lot of governmental agencies began to get involved in what could and couldn't be done on lakeshore property. Setbacks from the lake, and from neighboring properties, were put in place or broadened. Septic tanks that were sometimes nothing more than a barrel in the ground became much larger, and setbacks were also put in place on how close you could build to them. Some lots became "unbuildable," because the setbacks would actually cross each other, leaving no room to build.

Well, Grandpa (you know the Grandpa I'm talking about) already had three or four extra rooms tacked onto his cabin, along with two or three garages, a boathouse, an outhouse, a lean-to for the boats on shore, and a few other sheds to adorn the property. But Grandpa was "grandfathered in," so he could just keep all that extra stuff on the property - even though new codes would never allow it these days.

Now, you are in the market for a great place on the lake, and you realize that this place that Grandpa built is a beautiful piece of property, with west facing views over an excellent sand beach, towering white pines, and a little bit of that "old lake cabin" charm that is hard to reproduce only 27 feet back from the water's edge. There might be an extra shed or two on the property, but overall it is exactly what you want...if you can tear off a couple of these small bedrooms with low ceiling height and add a nice bright bedroom facing the lake. After all, Grandpa built whatever he wanted, wherever he wanted...why can't you?

This story could obviously go on and on about what you can and can't do with old lake cabins. But if you are thinking about making any changes to any place you are thinking about buying on the water, just make sure you check into your options thoroughly before purchasing. Otherwise, you may be stuck with Grandpa's design!

A Hint for Sellers Up North

2008-01-27T20:21:00.000-06:00

It's amazing to me how many times I hear a buyer say something like, "I already have a home...what I really want is something that feels like a cabin." The trouble is, as a seller, this has been your home for many years and you envision a new buyer moving in to use it as their full time residence. When you have those emotional ties to the place you have lived in for a long time - and maybe raised your family there - it's hard to see someone just buying it for a place to go play now and then. You also might think that it is not worth changing carpets or painting because a new buyer might want a different color. Big Mistake!

One thing I learned long ago in this business is that people talk about what is logical for them, but they end up purchasing based on their emotions. Even when buyers are just looking for a new home to live in, they have a hard time seeing through outdated decor. Homes with old carpets and poor lighting are an immediate turnoff for buyers, and they see a lot of them on their house hunting trips. But cabin buyers can be more particular yet in the emotional draw!

Their logical thinking tells them they need to have four bedrooms at the cabin for friends and family to visit, but emotionally they will purchase a two bedroom cabin that has the atmosphere you would expect at a cabin...a fireplace, knotty pine, a firepit, a great deck...and on and on. And I can't tell you how many times I've had a buyer who wanted to purchase all the furniture along with the cabin when it is decked out in great "cabinware."

If you live on a lake outside of a major city in Minnesota or Wisconsin, the reality is that a large majority of your potential buyers are looking for a cabin, or a place that feels like a cabin. So if you are serious about selling, you may only have to make a few improvements to make your place stand out.

Very few sellers will take the initiative to take out old carpets, add more relaxed furniture, or create a more interesting ambience. It may cost a few thousand dollars for you to do some of those things, but I can assure you that if you decide to invest upfront in a few of these improvements, your house will stand out - as a cabin - from the others when the cabin buyers come along. And one good test is to go out and look at other lake properties on the market, and decide which ones would be attractive to you as your new cabin.

Part 1 of Series..."What to Think About When Buying Lakeshore"

2008-01-25T11:51:00.000-06:00

When buyers start looking for a lake cabin, or a lot to build one on, they don't always think through what might be most important to them. Sure they know if they like to fish, but a vacation getaway can also turn into a pretty strong attraction for friends and relatives, so make sure you think through how you will use the property before you buy. I will be adding new articles quite often to this ongoing series to help waterfront buyers make the right choices. This first article is on boating.

Part 1: BOATING
What kind of boating are you into...or do you want boats around at all? Generally, you won't find a lot of skiiers on lakes much smaller than 200 acres, but sometimes the real serious water-skiiers like the smaller lakes because they are calmer. I've seen skiiers - especially barefooters - out on 50 acre lakes at dawn every morning. That may end up taking away some of your solitude if you are more into peace and quiet, not to mention disrupting your sleep!

Sometimes the problem with a small lake is that there is no place to get away from the activity, although many of them have more tranquility than you will find on larger water bodies when the boats aren't out there. And overall, these little lakes get a very small amount of traffic...and almost none from non-residents.

If you don't want a lot of activity in front of your cabin, but you still want to be able to have lake big enough for boating when friends are around, you may find the best property for your needs in a back bay or channel. Normally those types of properties will be less expensive, but much of the time they will not have as good of shoreline or water quality because of less wave action. Also, make sure you have enough depth during low water years to get the type of boat you plan on using in and out of the dock easily. Here, you may want to look at lakes that start at about 400 acres, which will give you about a twenty minute ride around the lake for an evening pontoon cruise, and offer up a good variety of fishing holes.

When you start approaching the 1,000 acre range for lake sizes, you can almost always find a wide variety of shoreline types available. You also tend to start seeing larger boats with faster motors to get around the lake quicker and easier in rough waters. If you plan to do a lot of boating in and out of the dock, and if you see yourself using the dock or shoreline to water-ski from, then make sure you have at least four feet of water at the end of the dock. And it doesn't hurt to have a couple more feet for safety if there is going to be a lot of people using the property for swimming - and potentially diving from the dock.

Minnesota and Wisconsin have thousands of lakes in the 200-1000 acre range, so there are plenty of boating options no matter where you go, and there are still quite a few with 1,000-10,000 acres to give some great boating opportunities. But when it comes to the big boys, with 40,000 acres or more, you will be a bit more limited. These are the types of lakes you can make a day - or in some cases even a week - out of. You will find every variety of boat out here, from canoes to yachts to houseboats. Whether you enjoy resort-hopping, island camping, great fishing, or just long distance boating, you will be able to find plenty of recreational opportunities on the "big lakes." You can even cross into Canada and explore vast wilderness areas on some of these border lakes.

Here are a few of the larger lakes to choose from:
Rainy Lake - 220,000 acres
Mille Lacs Lake - 132,000 acres
Lake Winnebago - 137,000 acres
Lake Vermilion - 40,000 acres
Lake of the Woods - 305,000 acres
Leech Lake - 109,000 acres

This is not meant to be a complete list, and there are definitely other lake chains and rivers throughout Minnesota and Wisconsin that offer extreme boating. But if the ones above aren't big enough for you, it may be time to explore opportunities on Lake Superior or Lake Michigan. Now that's boating!

Lakehomes.com Realty Agent Featured for Ingenuity

2008-01-24T12:23:00.000-06:00

Craig Mische is not one to follow in someone else's footsteps when it comes to marketing his listings. Craig runs the Alexandria Office for Lakehomes.com Realty, and he knows the power of the Internet. He gets plenty of information requests from across the country on his extremely informative website about Alexandria, Minnesota real estate - and the area in general - at CraigMische.com.

Because Craig keeps close tabs on Internet trends, he realizes that out of town buyers want as much information as they can get about a property before they make the trip to see it in person. Therefore, he goes way beyond what his sellers might expect as he drags his video equipment from property to property...no matter the weather. He says that this is already translating into additional buyer activity on his listings - and that is the name of the game when it comes to creating sales.

Michael Wurzer, Chief Executive Officer of FBS Systems, runs the computer programs that track tens of thousands of real estate listings from across the United States. When it comes to Realtors, he knows a trailblazer when he sees one, and he believes that Craig is charting some new territory. You can read what he had to say about Craig's ideas on his FBS Blog.

Are You a "True" Lake Home Buyer?

2008-01-23T17:47:00.000-06:00

Buying a lake home can be a little more difficult than purchasing a typical house in a residential neighborhood. There are a lot more factors to consider as you decide what is important to you on the water...and you may not be willing to sacrifice some of the modern conveniences that have become necessities in your life.

Generally, when an individual or a couple begin their search for a new home in the suburbs or their local community, they think about things like the drive time to work, the neighborhood, the amount of privacy the yard offers, and - of course - the design, square footage and condition of the home. Many buyers are quite set on the age of the home before they ever even begin to look, knowing that amenities like master suites, open spaces and taller ceilings are more likely to be found in the newer structures.

Certainly, when buyers begin searching for lakefront real estate, many of these factors from a normal wish list can also come into play. But I've found that true waterfront buyers tend to give up many of the features they are looking for in a home to get what they want in the property and the lake itself! They often focus on the type of shoreline, direction the home faces to the lake, depth for swimming and boating, and quality of water...not to mention fish species and fishing success rates.

This process is probably most evident with relocation buyers from other parts of the country, who sometimes imagine that most every home in Minnesota or Wisconsin must be on the lake because of the sheer number of water bodies that exist. It normally only takes about half a day for the "hopeful waterfront buyers" to realize that the home they have in mind (coming from a new development in another state) is not that easy to find here - especially at the price range they can afford. That is when we adjust quickly and help them narrow down the other factors that are important to them, so that we can get them in the right property within their limited time frame. By showing them their best options on water right away, we can help them eliminate those types of properties and give them more time to focus on what they really want.

However, I've also found that about 50% of relocation buyers are set on living on the lake, and they would rather purchase an older home or one that is further from the city rather than give up on their dream. And, generally, the smaller the lake size the lower the prices, so we are able to offer other options that can still give them their place on the water. It seems that when they have their heart set on lake living, nothing will stop them!

I'll talk about other factors that make up a "true waterfront buyer" in a future article.

When is the Spring Waterfront Market?

2008-01-21T11:59:00.000-06:00

Throughout the years I have noticed a fairly steady pattern of activity in different parts of the state as we get closer to spring. It doesn't seem to have a whole lot to do with temperatures or snow cover...although it is definitely easier to see closed up cabins and lots once some melting begins to take place. Instead, I think it has more to do with the beginning of a new year, and the fact that once the holidays are over it's time for a new outlook on life for many people. And as we get a little more daylight each day, it makes it somewhat easier to view a property or two after work instead of tying up valuable weekends.

We always notice our web traffic increasing right after Christmas, so we know that we are starting to attract a new crop of potential buyers to the site. Many years ago (like maybe ten), we would judge that new activity based on the amount of calls we would get off an ad, but the Internet makes it much easier for buyers to shop in secret.

Generally, around the beginning of February, we start to get a lot more emails and calls coming in from those people who have just been looking online, so we can tell they are beginning to get excited about the prospect of owning a lake place. However, actual showings tend to pick up much more quickly closer to the Twin Cities since that is where most of the buyers are coming from. As you move out into the two hour radius from Minneapolis - in areas like Alexandria, Brainerd, or Siren - it may take another month or so to get a large increase in showings...and Grand Rapids, Bemidji or International Falls can be a little later yet.

The one thing I hear over and over from sellers is that they want to wait until their yard is cleaned up and the flowers are blooming to put their place on the market. Cleaning up the beach and having the dock in can make an attractive setting, but there is often a major flaw in this thinking. Sellers don't realize that many buyers want that beautiful setting for themselves when the ice goes off the lake, so they are looking for the right waterfront property long before that. And, those are generally the most motivated buyers!

So, when you think about the best time to get your property listed for the spring market, remember that spring starts early in the mind of a lakeshore buyer, and that Minnesota and Wisconsin have short selling seasons. If you wait until it feels like spring, you might be too late!

Internet Real Estate Trends and Searches

2008-01-19T14:44:00.000-06:00

Since you are most likely sitting at your home or office reading this, you probably understand how much easier it is to look through available properties on the Internet before making calls to agents, or driving around trying to find a new home. It seems like most potential buyers have now figured that out.

In 1996, just 2% of buyers shopped the Internet for real estate. The National Association of Realtors study from 2007 showed a whopping 84% of buyers now starting their searches online. Although there is no concrete data on how high that number is for waterfront and vacation properties, it only makes sense that it is a higher percentage yet, due to the fact that most of these homes and lots are purchased from buyers many miles away - and that their income levels tend to be higher than average.

According to Topix.com, Google now has 64% of all Internet searches, and Yahoo has 21%. Also, a study by AHFX.net showed that 62% of Internet users click on the first page of the results when doing a search engine query.

If you are thinking of selling a property, make sure the agent or broker you choose has good search results for your geographic area and the type of property you are selling. A search for "Minnesota Lakefront Property" or "Northern Minnesota Waterfront Properties" may be a starting point for a buyer from California to get an overview of the market. If your property can be found easily on a search like that, you may attract more out of state buyers. However, a buyer from a 100 or 200 miles away may be more likely to type in "Bemidji Waterfront Real Estate" or "Alexandria Lake Property" for their search criteria. If your property also comes up on that type of search, it will be hard for you to miss any possible buyers.

My Thoughts on the 2008 Waterfront Market

2008-01-19T13:13:00.000-06:00

When I first started in the real estate business back in 1988, I remember my broker at Harvey Hansen Realtors telling me, "Once you're in this business for a long time, you can feel the pulse of the market." She was saying that she could sense what the market was doing, even before she pulled a market analysis or read the news on the latest sales figures. I guess now that I have been in the waterfront business for two decades, I have that same ability.

Like all of you, I have seen plenty of news reports on how bad the real estate business is. As we watched appreciation of 10-20% each year on many waterfront properties just a few years ago, I told plenty of people that there is no way that would continue. Well...it didn't. But where are we now?

Realistically, unless you purchased your home in the last few years, you probably still have had a decent increase in your value. Now, it may not be as much as what you would have had if appreciation had continued to go through the roof, but most people are sitting pretty good.

What I saw happening in late 2007, and what I think will continue to happen early this year, is that a lot of people who have been sitting on the sidelines are coming back into the market due to some very good price drops. Some of the sellers who didn't believe we were going to have a market correction would not lower their prices in 2006, but finally gave in this past fall. That, combined with the lowest interest rates in over two years, may make this one of the best spring waterfront markets ever. Once the media picks up on some of these great buys, there will be a rush back into the waterfront marketplace by a lot of buyers. Let me know if it turns out that I am wrong!